Envelope manufacturer collapses, makes 300 workers redundant

The suffering Australian manufacturing industry has been dealt another blow with 300 workers at the country’s biggest envelope maker made redundant yesterday as administrators battled to find a buyer for the troubled company.

Australian Envelopes entered voluntary administration last week with PPB Advisory acting as administrator.

The company operates two plants, in Western Australia and Victoria, with roughly half the workforce at each location.

PPB Advisory partner and administrator Stephen Longley has reportedly said Australian Envelopes suffered over the past year even though it increased its market share to nearly 45%.

The overall decline of the paper goods industry and the shift away from snail mail proved disastrous for the company.

The Australian Manufacturing Workers’ Union confirmed this morning that 300 staff had been made redundant and that they will be eligible to receive entitlements if a buyer isn’t found.

“If a buyer isn’t found then hopefully the company goes into liquidation and those benefits are received,” a spokesman told SmartCompany this morning.

The AMWU has criticised the company for poor management practices, saying the owners did not inform workers about the financial situation of the company, which is reportedly turning over $75 million a year but is operating at an annual loss of nearly half a million dollars.

Australian Envelopes was contacted this morning for a comment but SmartCompany was referred to PPB Advisory.

PPB Advisory was contacted but no reply was available before publication.

PPB Advisory Partners Stephen Longley, Craig Crosbie and Daniel Bryant were appointed as administrators.

“PPB Advisory has commenced an urgent assessment of the business and operations have been rationalised to care and maintenance levels while the review is undertaken,” the administrators said last week.

“PPB Advisory will immediately commence a sale process and every effort will be made to achieve a prompt sale of the group’s business and assets.”