API Group has initiated bankruptcy proceedings in the UK and US.
API is a manufacturer and distributor of foils, laminates and holographic materials for packaging across premium drinks, confectionery, tobacco, perfumery, personal-care, cosmetics and healthcare industries.
The company’s bankruptcy filing affects its laminates and foils business in the US and UK. The US laminates business is actively engaged in a sale process, during which time the laminiates division will continue normal operations. The foils business will be liquidated.
BBC media has reported API plant closures in the UK and 155 employees made redundant. The company will keep on 77 workers to help operate a draw down.
Ernst & Young is serving as administrator of the UK company moving forward.
Colin Dempster of Ernst and Young told the BBC: ‘We will continue to trade certain parts of the business on a reduced capacity, supplying key customers who are supporting the business while we consider the Group's options.’
In a letter to customers and vendors, API’s US laminates business cited ‘substantial changes in the market for enhanced packaging which have affected or business for laminated products.’
‘The group has experienced difficulties in recent times due to the integration of its purchases, changes in regulation (specifically in relation to tobacco packaging), the loss of major customers and changes in the market,’ Dempster said.
API has indicated that its US foils business will be moved into a wind down mode, during which time there will be limited manufacturing, and the company intends to sell its remaining inventory. Any outstanding amounts owed to vendors will be addressed through the Chapter 11 bankruptcy process.