More than 120 jobs have been saved after a Wearside firm stepped in.
Nick Reed and Bob Maxwell of Begbies Traynor in Leeds were appointed as joint administrators of Great Northern Envelope Company (GNE) in the city on February 12.
The firm had experienced some difficult trading conditions, but has now been saved after it was bought by Washington-based Encore Envelopes, saving 129 jobs.
The business will trade as Great Northern Envelopes going forward.
Established in 1984, Encore Envelopes has a turnover in excess of £28million. It produces nearly three billion printed envelopes from its factory in Washington for the direct mail and transactional markets, serving the same sector as GNE, as well as operating a 73,000 sq ft £1.8million packaging production facility on Peterlee Business Park.
Following the acquisition, Russell Croisdale, managing director of Encore Envelopes, said he was delighted to be able to save the staff’s jobs and ensure the firm’s customers would not be affected by the collapse.
It’s great news that we have been able to purchase the business and assets of Great Northern Envelope Company as this transaction will provide continuous employment for the company’s experienced and loyal workforce.Russell Croisdale
“It’s great news that we have been able to purchase the business and assets of Great Northern Envelope Company as this transaction will provide continuous employment for the company’s experienced and loyal workforce,” he said.
“Importantly, the acquisition, coupled with the ongoing strong financial and technical support which Encore can provide, will also ensure the continuity of supply for all Great Northern Envelope customers from its factory in Leeds.”
Joint administrator Nick Reed said the move would help to guarantee the long-term future of the Leeds plant.
“While GNE has faced tough trading conditions in recent years, it will benefit from being part of a large, established company like Encore,” he said.
“In the circumstances, the sale is the best possible outcome for creditors, staff and customers.”
Encore Envelopes was advised by PwC and Langleys. Begbies Traynor was advised by Irwin Mitchell.