Member Article

23 jobs lost as Benfield Pack and Wrap enters administration

South Shields-based Benfield Shrink & Seal Limited has entered administration after failing to reach profitability, resulting in the loss of 23 jobs.

The business, which has traded as Benfield Pack and Wrap since 2014, provides contract packing services to a number of established consumer product manufacturers.

Yorkshire advisers Mark Ranson and Mike Kienlen, of Armstrong Watson’s Restructuring, Recovery and Insolvency practice, were appointed to look for a new buyer last month although to no avail so far.

The company, which recently-relocated its operations to Port of Tyne, has found trading during the first half of most years of late increasingly challenging.

A major contract for the latter half of each year was expected to provide sufficient profit to cover the costs of the move. However, whilst the contract has provided significant turnover for the business in the latter half of 2016, the business has not proven to be profitable.

It became apparent to the firm at the end of December that it could not continue to service its liabilities given the lack of profit combined with an anticipated upcoming quieter period.

Mark Ranson, Head of Restructuring, Recovery & Insolvency and Joint Administrator, said: “We are continuing to seek a purchaser for the business and assets of this North East Company and we hope we will be successful in finding a purchaser.

“However, there is a very limited window of opportunity and I would encourage any potentially interested parties to contact me immediately to discuss their interest whilst we explore all options to realise the assets.

“We will be working to provide support to the employees at this difficult time in conjunction with employment specialists so that their claims with the Redundancy Payments Office may be processed as quickly as possible.”

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