BRUSSELS: Troubled publishing group PaperlinX has appointed administrators to its operations in the Netherlands and Belgium.
Another European arm of printing and publishing group PaperlinX has been placed in administration, and more could follow.
The company’s subsidiary in the Netherlands and Belgium has been handed over to administrators, amid falling revenues and profit margins due to weak demand for paper products.
PaperlinX’s UK business, which was blamed for the company’s $28 million loss in the first half of the current financial year, was placed in administration on April 1.
The company had been trying to sell its business in the Netherlands and Belgium, but failed, and acknowledged the appointment of administrators may have an impact on the sales process for other European businesses.
They include Austria, Czech Republic, Denmark, Germany, Ireland, Poland and Spain.
We deeply regret the impact this will have on employees and all stakeholders of the Benelux operations in the Netherlands and Belgium, but given the circumstances the commencement of this administration process was the only option for the local directors,” chief executive Andy Preece said.
PaperlinX said its operations on Australia, New Zealand and Asia are separate to its European businesses, and would continue to operate unchanged.
The company’s shares have been suspended from trade since March 26, and returned to trade on Wednesday.
