Trading conditions have been worsening since the management buy-out in 2019, exacerbated by the recent energy and cost crisis.
After encountering serious cost problems in the present energy crisis the UK subsidiaries of Arjowiggins Group were put under administration on 22 September 2022. Administrators of Interpath Advisory in the UK say that 10 Arjowiggins Group UK subsidiaries were put under administration, including the two mills the group operates in the UK, Stoneywood in Aberdeen and Chartham in Kent.
The administrators made 368 of the group's 463 UK-based employees redundant immediately following their appointment. A total of 95 members of staff have retained to keep a limited level of activity across the two sites while possibilities of a sale of the sites and the assets are being explored. Interpath says it asks interested parties to contact them "as a matter of urgency".
The group has been encountering difficult trading conditions after the management buy-out in 2019 following the insolvency of French parent companies, Arjowiggins and Sequana. The negative impact of COVID-19 on trading and cash flow put results under pressure, the administrators report. The group has been loss-making, with losses being exacerbated in recent times by significant increases in energy costs and the price of raw materials, especially pulp, they say.
The following companies within the Arjowiggins Group have been put under administratrion: AW Creative Papers Group Limited, Arjowiggins Group Limited, AW Branding Limited, AW Estates Holdings Limited, AW Estates Scotland Limited, AW Estates England Limited, Arjowiggins Papers Limited, Arjowiggins Translucent Papers Limited, Arjowiggins Chartham Mill Limited, Arjowiggins Scotland Limited.
The Group also owns and operates mills in Spain and China via its Guarro Casas and ArjoWiggins Quzhou subsidiaries. Neither operating company is subject to insolvency proceedings, the administrators explain.