The Great Northern Envelope Company in Leeds has been immediately acquired after Nick Reed and Bob Maxwell of Begbies Traynor were this week appointed as joint administrators.
Difficult trading conditions led to administrators needing to be called in, but a Tyne and Wear-based Encore Envelopes stepped in to purchase the business in a deal that has saved almost 130 jobs.
Established in 1984, Encore Envelopes has a turnover in excess of £28 million. It produces nearly three billion printed envelopes from its factory in Washington for the direct mail and transactional markets, serving the same sector as GNE.
Following the acquisition, Russell Croisdale, Encore Envelopes MD, said: “It’s great news that we have been able to purchase the business and assets of GNE as this transaction will provide continuous employment for the company’s experienced and loyal workforce.
“Importantly, the acquisition, coupled with the ongoing strong financial and technical support which Encore can provide, will also ensure the continuity of supply for all Great Northern Envelope customers from its factory in Leeds.”
The business will trade as Great Northern Envelopes going forward.
Joint administrator Nick Reed said: “While GNE has faced tough trading conditions in recent years, it will benefit from being part of a large, established company like Encore.
“In the circumstances, the sale is the best possible outcome for creditors, staff and customers.”