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Sale of Glasgow Plastic Packaging Company Saves Jobs

Sale of Glasgow Plastic Packaging Company Saves Jobs

The business and assets of Scotplast Limited, an injection moulding packaging company based near Glasgow, have been sold, saving the jobs of all staff.

Based at Cambuslang Business Park, the business, which manufactures containers for the food sector, has been trading for 15 years and is forecast to turnover £2.4m in 2012. Following the loss of a major customer and coupled with rising raw material and distribution costs, Scotplast faced an increase in pressure from creditors and cash flow problems.

The directors turned to Begbies Traynor Group, for advice and the firm rapidly undertook a marketing campaign to identify potential buyers within the market. Following negotiations with various parties, a deal was completed with a new company, Northpac Limited, led by several members of the former management team.

The sale to NorthPac was completed quickly to avoid business disruption and secure the jobs of all of the employees.

“The swift completion of the sale of the business and assets, as a transfer of a going concern, enabled production to continue, securing existing relationships with customers and safeguarding the jobs of all staff,” explains Paul Dounis of Begbies Traynor Group. “As a new business, but with an experienced team at the helm, Northpac is well placed to take advantage of the trade and assets it has purchased.”

Julie Palmer

About the author

Julie Palmer

Regional Managing Partner

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Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland