Over 150 redundancies at Pulse Flexible Packaging

By Richard Stuart-Turner, Tuesday 18 April 2017

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Administrators of Pulse Flexible Packaging have said manufacturing has now restarted at the firm’s two sites, but that 152 staff have been made redundant.

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152 staff have been made redundant at Pulse Flexible Packaging

Jonny Marston and Howard Smith from KPMG were appointed administrators of the Bury-headquartered consumer goods packaging manufacturer on 3 April after the company suffered operational challenges that led to an additional funding requirement that could not be met.

Marston said: “Thanks to the overwhelming support of both customers and suppliers since our appointment, we have been able to recommence part-production across the business’s two sites.

“We are also in dialogue with a number of interested parties in the business, and will continue these discussions over the coming days and weeks in the hope of achieving a sale.

“Unfortunately, however, we have had to make redundancies across the two sites - 152 in total. We are now assisting these employees with their claims for any sums due to them from the Redundancy Payments Service.”

The company, which also has a production facility in Saffron Walden, had 350 staff prior to the administration.

Pulse Flexible Packaging was established in May 2014 following a management buyout (MBO) of the UK operations of Printpack Enterprises Ltd from US parent Printpack Inc.

The business recorded a turnover of £57.9m and gross profit of £8.8m for the year ended 31 March 2016. However, it had administration expenses of £5.7m and other charges that contributed to overall profit for the period of £1.7m.

A potential pre-pack sale of the firm was blocked due to its pension scheme being a shareholder and secured creditor of the business. The Pension Protection Fund (PPF) is expected to take on the scheme’s 700 members.

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