The group, which is headquartered in Australia and listed on the Australian stock exchange, has just posted its results for the financial year to 30 June.
Impairment charges and write-offs related to its European businesses came to A$300.3m, and Paperlinx also lost A$64.6m on the sale of its Spicers Canada business in February.
The total loss, including restructuring and strategic review costs, was A$392.3m (2014 loss: A$63.6m).
Group sales, including a nine-month contribution from the UK, which had been its biggest European operation, fell by 29% to A$2.02bn. Underlying trading losses in Europe, which Paperlinx said were mainly attributable to the UK, Benelux and Germany, ballooned to A$27.8m from A$16m.
Its German operation remains up for sale.
There was no commentary in the results flagging any potential future liabilities relating to its European exit, where it left a deficit in its UK pension schemes of £180m.
The continuing Paperlinx business in the ANZA (Australia, New Zealand and Asia) region posted sales down 5% to A$404m and EBITDA down 4% at A$14.7m, although within that its sign and display business posted sales and profits up more than 30%.
In a statement, chief executive Andy Preece said: “The company’s principal objective is to become increasingly diversified within the ANZA region to offset the ongoing decline in its commercial print markets, by redirecting cash and investing to transform into a broader wholesale and distribution business.”
Preece and chief financial officer Wayne Johnston have taken unspecified wage cuts as a result of the downsizing and “reduced complexity” of the business.
Preece was appointed in February on a salary of A$900,000 plus benefits and incentive scheme, but with the proviso that this could be reduced depending on the future shape of the business.
Paperlinx will seek shareholder approval for the name change to Spicers at its AGM in October.
The huge 31,000sqm Moulton Park warehouse and distribution site near Northampton that had been occupied by Paperlinx UK remains to let.
