Northampton-based PaperlinX UK goes into administration

PaperlinX head office in Moulton Park Image copyright Google
Image caption Redundancies will be made at PaperlinX UK's head office in Moulton Park

A paper merchant based in Northampton has gone into administration with the loss of almost 700 jobs.

Administrators Deloitte are now looking for a buyer for PaperlinX UK, a subsidiary of an Australian firm which is not affected.

About 200 jobs will be lost in Northampton where the group has a head office in Moulton Park and manufacturing plants at Brackmills.

The firm has struggled due to an increase in digital communications.

As a result, the paper business had been hit by falling demand, joint administrator Matt Smith said.

Sites remain open

The administration only affects PaperlinX UK's paper businesses and 14 plants would close.

UK packaging operations would continue to trade normally, Deloitte said.

Trade would continue from five sites, including the Mansion Close head office where staff would be reduced by 188.

Other sites remaining open will be at Belfast, Coventry, Manchester and production plants in Rhosili Road, Northampton where staff numbers will reduce from 30 to 20.

Businesses would continue a limited trade to "secure the best value available from current stock holdings and other assets".

Specialists had been called in to support employees facing redundancy, Mr Smith said.

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