The Courier & Advertiser (Fife Edition)
Hope for Tullis Russell as potential buyers emerge.
KPMG: Talks held with administrator over possible sale of Markinch business
Collapsed Fife paper maker Tullis Russell could yet be saved, after a number of potential buyers expressed an interest in the historic business.
Administrators KPMG last night said it is in talks with several parties over a potential buy-out or sale of part of the business. The announcement will give hope to the 325 workers axed with immediate effect after the administrators were called in last month.
The decision to close the mill was taken by directors after an extensive marketing exercise over several months failed to identify a buyer for the loss-making business.
However, since KPMG took over the running of the firm on April 27, a number of parties have come out of the woodwork and expressed an interest in potentially acquiring the business.
The administrators last night said it has moved to re-establish contact with more than 70 potential buyers – the majority of which are paper manufacturers and merchants – in the days since its appointment.
That exercise has led to a number of notes of interest being lodged from parties worldwide, both for the business and assets as a going concern and for individual assets or brand names.
KPMG said an information memorandum has been issued to a “small number” of potential buyers and confidentiality agreements are in place. The next step will see the interested groups make site visits to the mill and hold discussions with the senior management team.
“We have been contacted by a number of parties that have expressed an interest in the business, which reflects the company’s long history, strong reputation for high-quality products and the high regard in which it was held by its customers and within the industry,” joint administrator Blair Nimmo said.
“Nevertheless, there remain a number of challenges to overcome should a purchaser wish to acquire the business and assets and recommence paper manufacturing.
“We have set an initial closing date for indicative offers for the business and assets for noon on Monday May 18, after which we will be better able to assess the level of interest. In the meantime, we would like to thank the company’s staff for their ongoing assistance.”