UPDATE: Sale of five Celloglas sites confirmed

PrintWeek can confirm that the sale of five sites previously run by finishing specialist Celloglas to new company Newcelloco has been completed.

The remaining sites are still up for sale, but around 30 staff have already been made redundant by administrators.

Unite has already hit out at at new company Newcelloco, saying it is "appalled" at the move.

Reading-headquartered Celloglas went into administration with insolvency practitioner MCR on Monday (5 January).

MCR confirmed this afternoon that five sites, two in Leeds (Hunslet and Seacroft) Reading, Birmingham and Leicester, have been bought by Newcelloco.

The new company was formed on 29 December 2008 and is headed up by Celloglas directors James Hanson and Peter Clayton.

Around 140 jobs have been retained in the move. Celloglas had employed around 300 staff across 13 facilities.

Richard Gillgrass, managing director of the new business, who was also part of the Celloglas management, said: "It is with regret that there have been job losses, the majority of which are in the factories which have not been acquired by the new company."

Remaining operations at Birmingham, Bristol, Gloucester, Acton, Sevenoaks, Manchester and Dorset are still operating under MCR.

Unite has pledged its support to its members at sites that are still in administration.

National officer Martin Hodge said: "We are appalled and outraged at the way the directors have handled this. It is unbelievable that people are legally allowed to do what has gone on.

"They have cherry-picked sites and, in our opinion, the directors should not be allowed to run a business. There are definite questions about the ability of those running the business. We are disgusted."

Administrator Geoff Bouchier added: "We have been approached by a number of parties registering their interest in the other sites. We are not at any advanced stage of negotiations."

He added that there was no timeline as yet for closing plants.