CPC Packaging staff sent home after bank pulls funding

CPC Packaging has sent staff at its King's Lynn and Bristol sites home, as speculation about the packaging printer's future grows.

Unite regional officer Steve Ireland confirmed that all of the union's members had been sent home from the company's King's Lynn site yesterday (24 August).

He said: "Our members are due a fortnight's pay today, so we will see what happens."

When PrintWeek called CPC's other UK site in Bristol, a receptionist said staff there had also been sent home.

However, Jeff Lewis, sales and marketing manager at CPC Packaging, claimed yesterday afternoon that only some staff had been sent home.

He said: "Staff from the production side, including cutting and finishing, have been sent home. The commercial team was still there.  

"We will probably know more later as a conference call is taking place with the bank."

Lewis added at the time that the company was "not in administration at the moment".

CPC could not be reached for further comment at the time of writing.

According to accounts filed at Companies House, combined staff at the two sites in 2008 was 162.

Turnover for the year ending 31 December 2008 at CPC King's Lynn was £12.3m, on which it made a pre-tax loss of £642,000.

CPC Bristol's turnover for the same year was £11.4m and it posted a pre-tax loss of £188,000.

It is understood that the company's bank has withdrawn funding, while it is also understood to have had problems with its suppliers.

Unite met with management at the plants earlier this week to discuss the situation.  

Ireland said: "Unfortunately, we were unable to reach an agreement. We have also been in talks with the company's bank."

A spokeswoman for the company confirmed that Chris Dew, director and general manager at CPC Packaging UK, left the business at the end of July.