Hereford & Worcester

Up to 175 jobs cut at Hereford's Gelpack companies

Gelpack Excelsior Limited Image copyright Google Maps
Image caption Gelpack Industrial Limited and Gelpack Excelsior Limited had suffered "difficult" trading conditions, administrators KPMG said

Up to 175 people have been made redundant at two plastic packaging companies.

Staff at Gelpack Industrial Limited and Gelpack Excelsior Limited in Hereford were told the news earlier, days after the firms went into administration.

Despite Gelpack being a leading name within the packaging industry, they had recently suffered "difficult" trading conditions, administrators KPMG said.

A "skeleton staff" has been retained to fulfil outstanding orders.

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Speaking last week, KPMG said the difficult conditions led to an additional funding requirement, which prompted them to enter into administration.

In a statement on Tuesday, Mark Orton, from KPMG, commented: "We are in talks with a number of interested parties, and over the coming days and weeks, our principal focus is seeking a buyer for some or all of the businesses' assets.

"However, without funding for the businesses, Gelpack Industrial and Gelpack Excelsior were unable to continue trading. We will now work to wind down the businesses, providing support for the employees and exploring options to realise assets."

Their customers included well-known names from across the food and drink, pharmaceutical and bedding sectors.

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