Cheltenham-based Vibixa is located on a six-acre site in an industrial area to the west of the town centre. It prints a range of cereal and retail-ready packaging products, and produces around 6.7m cartons a week.
As well as work for Weetabix’s own brands, including Weetabix, Oatabix, Alpen and Ready Brek, Vibixa also prints for third parties.
It has produced cereal packaging for Honey Monster Puffs, own-brand cereal packs for Tesco and Waitrose, and other food packaging for supermarkets and brand owners. It also produces some non-food packaging.
No specific reason was given for the proposed closure in the statement announcing the plans from Vibixa management, who declined to comment further.
The statement said: “Vibixa regrets to announce that it is proposed the firm will close with the loss of 105 jobs. The proposal will require a managed run-down of production that will complete early next year.
“This has been a difficult decision and we appreciate it affects all of our people and their families. The management team is working with its employees, their trade unions and local employment agencies to assist our colleagues in finding new roles.”
PrintWeek understands the closure plan follows an unsuccessful search for a buyer for the business.
The plant runs two Manroland sheetfed presses and three large-format Bobst cutting and creasing lines.
Vibixa was number 134 in last year’s PrintWeek Top 500 with sales of £18.6m.
Its most recent accounts, to 28 December 2013, sales were down 6.2% to £17.5m, while pre-tax profits almost halved, falling 47.8% to £856,000. The strategic report accompanying the figures described trading as “satisfactory”.
Vibixa had shareholders’ funds of £11.4m at the year-end. In a post-balance sheet event in April this year, it paid out a dividend of £9.75m to its shareholders.
Weetabix’s ultimate parent company is Bright Food (Group), a company incorporated in the People’s Republic of China. It acquired a majority stake in the business two years ago.
Also in April this year, Weetabix announced plans to cut employees’ pay and hours after sales failed to meet expectations in the highly-competitive breakfast cereals market. It employs around 2,000 staff.
Supermarket cereal sales have been impacted by own-brand products from discounters such as Aldi and Lidl.
