Nick Reed and Bob Maxwell, partners with Begbies Traynor in Leeds, have been appointed as joint administrators of Great Northern Envelope Company (GNE), and has sold the company to a rival in a pre-pack deal which preserves 129 jobs
The administrators said GNE had experienced some difficult trading conditions, but Tyne and Wear-based Encore Envelopes Ltd stepped in to purchase the business.
GNE manufactures and supplies around 1.5bn envelopes a year. Turnover at the company was down 7.8% to £16.4m in its most recent financial year, to 30 April 2017, while operating profit fell by almost 30%, from £784,900 to £567,400.
Established in 1984, Encore Envelopes has a turnover in excess of £28m. It produces nearly three billion printed envelopes from its factory in Washington for the direct mail and transactional markets, serving the same sector as GNE.
Russell Croisdale, managing director of Encore Envelopes, said: ‘It’s great news that we have been able to purchase the business and assets of GNE as this transaction will provide continuous employment for the company’s experienced and loyal workforce. Importantly, the acquisition, coupled with the ongoing strong financial and technical support which Encore can provide, will also ensure the continuity of supply for all GNE customers from its factory in Leeds.’
The business will trade as Great Northern Envelopes going forward.
Nick Reed, Begbies Traynor partner and joint administrator, said: ‘While GNE has faced tough trading conditions in recent years, it will benefit from being part of a large, established company like Encore. In the circumstances, the sale is the best possible outcome for creditors, staff and customers.’
Report by Pat Sweet
