A HEREFORD-based plastic packaging company has appointed administrators and sent the majority of its staff home as future options are reviewed.

However, no redundancies have yet been made at Gelpack Industrial Limited and Gelpack Excelsior Limited where ‘difficult trading conditions’ have led to an additional funding requirement.

Chris Pole and Mark Orton from KPMG have been appointed joint administrators to the firm which is headquartered in Hereford and employs approximately 200 staff.

Following the appointment of the joint administrators, the majority of staff have been sent home, although the administrators have retained a skeleton staff to help fulfil outstanding orders.

Mark Orton, partner at KPMG and joint administrator commented: “Gelpack is a leading name within the packaging industry, with customers including well-known names from across the food and drink, pharmaceutical and bedding sectors.

"However, both companies have recently suffered difficult trading conditions that have led to an additional funding requirement, which has prompted them to enter into administration.

“We are currently reviewing options for the companies, including the option to continue to trade in the short term, while we seek a buyer for the businesses and their assets."

He urged anybody interested to contact the joint administrators as soon as possible. 

Jesse Norman, MP for Hereford and South Herefordshire said: "This is dreadful news.

"We must do whatever we can to help the company, support employees who have been laid off and assist local suppliers who may be exposed as well.

"I have spoken to administrator Mark Orton of KPMG.  He has told me that the company has had to endure a very difficult trading period after a major refinancing, but that the order book is strong. 

"I have since been helping the administrator to notify a range of potential investors, but needless to say time is of the essence. Anyone interested in supporting or investing in Gelpack should come forward to Mr Orton as soon as possible." 

Councillor Chris Chappell for the Hinton and Hunderton ward said: "Many of my constituents have been affected and it’s a devastating blow to the 200 people who have temporarily lost their jobs.

“Hopefully Herefordshire Council will do everything they can to find a new buyer. I want people to come to my surgery on Saturday if they have any problems.”

Cllr Chappell is encouraging any of his ward constituents with any problems to visit Hinton Community Centre tomorrow between 10am and 11am.