The management team led by managing director Mike Duckett is on the brink of buying the assets of Donside Paper Company.


Heads of Agreement have been signed with the team, which also includes operations director Steve Harkin and Jim Gehrman, the chief executive of Donsides US subsidiary.


Rumours of their bid were revealed in PrintWeek three weeks ago (PrintWeek, 27 April).


Duckett said: The funding is in place and has been agreed by the receiver. It is now subject to due diligence, but we expect it to conclude in May.


PricewaterhouseCoopers was called in as administrative receiver at the end of last year (PrintWeek, 15 December) and promptly reduced the workforce by a third, leaving 262 employees. However, Duckett said it was too early to predict if those affected by the cuts would be re-employed.


Duckett added that the new Donside would develop its business focus to create a buffer against currency fluctuations.


Were going to target more Dollar sales against our Dollar purchases to act as a natural hedge. But thats not to say that will be at the expense of existing successful sectors. Were the number one label supplier in the UK, and will remain so, said Duckett.


It is good that weve now reached this point in the sale process after an uncertain time the future looks good, he added. I would like to thank suppliers, customers and employees for their support.


The company has strong orders, particularly for its speciality papers in the US.


The news follows a turbulent few months, during which chief executive Bill Gore stepped down and Premier Paper started legal action against the firm (PrintWeek 24 November).


Story by John Davies