Paperlinx B.V., the Paperlinx operating company in the Netherlands and Belgium, has filed for a Suspension of Payments under the Dutch Bankruptcy Code (Faillissementswet) on 14 April.
According to a press release, the main reason for this move is "substantial ongoing operating losses due to declining revenues and falling profit margins from lowered demand for paper in the Benelux region together with challenges in restructuring, the tightening of supplier payment terms following withdrawals of trade credit insurance and the flow on impact of the PaperlinX UK administration".
Paperlinx has reportedly invested substantial funds over the past five years into the restructuring of the Benelux and other European operations, but did not succeed in turning around the company's performance. The sale of Papelinx Benelux operations did not succeed.
The Chief Executive Officer of PaperlinX, Mr Andy Preece, said that PaperlinX had made exhaustive efforts to secure a sale of the Benelux business but it was not possible to do so. When it became clear that the business could not be sold as a going concern and with the pending withdrawal of the ING Dutch financing facility, the local directors had no choice but to request the court tocommence an administration process, according to Paperlinx.
“We deeply regret the impact this will have on employees and all stakeholders of the Benelux operations in the Netherlands and Belgium, but given the circumstances the commencement of this administration process was the only option for the local Directors”, he said.
PaperlinX is an international merchant of fine paper, industrial packaging products and equipment, sign and display hardware and consumables, and graphic supplies and systems.
