More bad news for Australia’s manufacturing industry as approximately 300 workers were made redundant as the country’s largest envelope manufacturer.
Australian Envelopes has entered into voluntary administration last Friday with PPB Advisory acting as administrator. The administrator has since struggled to find a buyer for the envelope maker lead to the shock announcement of about 300 job cuts on Monday. About 20 to 30 staff will reportedly stay on while administrator proceedings continue. According to company records, the company has 300 employees.
Sacked staff will reportedly be eligible to receive entitlements if a buyer isn’t found. News of a possible closure is a hard blow for the workers some of whom have worked at the company for more than 20 years.
Most are hoping that the company will go into liquidation soon so that staff can begin to claim for their entitlements.
According to the administrator, the company suffered dramatically this past year due to the overall decline of the paper goods industry and its shift away from snail mail, despite having increased its market share to almost 45%.
However, the company has been criticised for its poor management and not advising its staff on the company’s negative performance for some time.
Australian Envelopes is said to bring in over $75 million a year, but is operating at an annual loss of almost half a million dollars.
The company has offices in Melbourne, Sydney, Adelaide, Perth, Brisbane and Canberra and two plants located in Western Australia and Victoria.
The first meeting of creditors is scheduled for July 11.