Dudley Stationery is set to focus attention on the South East and shed more jobs from satellite distribution centres, in addition to the 100 lost last week.

Alan Brient, chief executive officer of the Bow-based firm, has stepped down but remains on the firms board. He is replaced by Colin Smith, former chief executive officer of Rigid Group.

Smiths appointment was made in conjunction with Dudleys bankers and administrator PricewaterhouseCoopers as part of a restructuring package.

Smith said: "My initial role was to determine a strategy that would restructure the business in such a way to help Dudley recover. Stock levels have improved significantly."

Dudley Stationery will keep on regional distribution centres (RDCs) in Ashford, Norwich and St Albans, as well as its two London-based facilities including Dudley Print, which had staff levels reduced by 50% to 45 employees last week.

PricewaterhouseCoopers partner and joint administrator Bob Bailey said: "Some of the RDCs will be closed where theres cross-docking, also depending on their location. Burnley will be sold as a going concern and I can confirm that we have had a firm offer for it that we are pursuing."

As PrintWeek went to press there were question marks over the future of the distribution centres located at Birmingham, Barnsley, Cambridge, Epsom, Gloucester and Luton.

Bailey added: "Weve unblocked supply lines. Its important for us to get stock on shelves and drive the business forward. Were talking to a financial institution at the moment and expect the matter to be resolved by the end of the month."

Story by John Davies