Administrators confirm that no indicative offers for the business and assets have been received.
Prior to entering administration, Tullis Russell Papermakers had been widely marketed for sale by its parent company, Tullis Russell Group Limited. The Group had approached 64 parties worldwide, but administrators say the process proved to be unsuccessful.
Following their appointment, the Joint Administrators contacted the parties to establish whether they wished to acquire the business and assets, but the parties reconfirmed their position and did not pursue any interest.
A wider sales process was initiated with the Joint Administrators contacting approximately 200 parties.
Blair Nimmo, Joint Administrator and Head of Restructuring at KPMG in Scotland, said: “The level of interest shown in the business and the outcome from Monday’s closing date is disappointing. The business continues to face considerable economic challenges as a result of weakening global demand for printed materials, rising raw material costs and the strengthening of Sterling against the Euro.
“We will now be working with the company’s remaining employees to continue to wind down operations and focus on realising the company’s assets.
“Unfortunately that will mean further redundancies but we will continue to work with government agencies to offer support to those affected.”
On appointment of the Joint Administrators’, 325 of Tullis Russell’s 474 staff were made redundant. While some work has been ongoing to meet existing customer orders, a further 21 employees have been made redundant while operations are being wound down.
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