Bridgewater Paper Employees Face Uncertain Future
Feb. 11, 2010 - Almost all of the employees at AbitibiBowater's UK-based subsidiary Bridgewater Paper Company (BPCL) have been temporarily laid off following the mill's move into administration.
The 220,000 tons per year recycled newsprint mill shutdown production on Feb. 2 when the company filed for administration in the UK.
The mill employs 300 people — 271 of which have been temporarily laid off.
Tom Jack, an administrator of Ernst & Young, the firm appointed to oversee the situation, said, “We are extremely grateful for the support and commitment the employees have given during this time of uncertainty.
"We are holding discussions with a number of potential interested parties and are continuing to fulfill customer orders from stock while the sale of the business process continues."
A Printweek online news story reported that a spokeswoman for Ernst & Young indicated that it was too early to know how long the staff would be laid off. The spokeswoman told Printweek the mill had “traded at a loss for some time” and “the business could no longer meet its debts as they fell due.”
BPCL subsidiaries Cheshire Recycling and Abitibi-Consolidated Europe SA are not affected by BPCL's filing for administration.
See related story:
Bridgewater Paper Co. Files for Administration in UK (2/2/2010)