Dominic Wong, David Langton and Andrew Peters of Deloitte were appointed as Joint Administrators of Merlin Packaging Limited, Elderglade Packaging Limited and John Baldwin Packaging Services Limited on 19 April 2007.

The Group manufactures corrugated cardboard cartons, cases and boxes from 6 locations across the UK:

• Merlin Packaging Limited has a turnover of £18 million, trades from four locations - Glasgow, Gateshead, Stoke on Trent and Great Yarmouth - and employs 175 staff;
• Elderglade Packaging Limited has a turnover of £1.5 million and trades from Ilkeston, with 25 staff;
• John Baldwin Packaging Services Limited has a turnover of £1.5 million and trades from Birmingham with 20 staff.

The failure of the Group has been attributed to losses incurred at Stoke on Trent, which had excess capacity. Whilst action has been taken to reduce capacity and improve productivity, the losses incurred have adversely impacted upon cash flow.

Dominic Wong, Partner in Deloitte’s Reorganisation Services practice, said:

"Each location has a good reputation for customer service and a good customer base within its region. We are continuing to trade whilst seeking buyers for the businesses as going concerns. Each location is a stand-alone business and we are seeking offers for the businesses either as a group or individually".

Ends

Notes to Editors

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country’s leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.