Jobs at risk as Gelpack enters administration

Two plastic packaging companies employing about 200 staff in Hereford have gone into administration.

Chris Pole and Mark Orton from KPMG have been appointed joint administrators of Gelpack Industrial and Gelpack Excelsior, manufacturers of plastic packaging for the industrial sector.

Following the appointment of the joint administrators, the majority of workers have been sent home, although the administrators have retained a skeleton staff to help fulfil outstanding orders. There have been no redundancies.

KPMG partner Mark Orton said: "Gelpack is a leading name within the packaging industry, with customers including well-known names from across the food and drink, pharmaceutical and bedding sectors. However, both companies have recently suffered difficult trading conditions that have led to an additional funding requirement, which has prompted them to enter into administration.

"We are currently reviewing options for the companies, including the option to continue to trade in the short term, while we seek a buyer for the businesses and their assets. We would encourage anybody who may be interested to contact the joint administrators as soon as possible."

Gelpack Excelsior was created in 1988 through the merger of Excelsior Plastics and Gelpack Industrial. However, polyethylene extrusion at the Hereford site dates back to 1962 with bag production commencing in 1972.