Sirane, a Telford, UK-based packaging manufacturer, has appointed administrators after grappling with rising costs.
This move leads to the redundancy of 172 employees across the company's three Telford sites.
Sirane has been contending with escalating financial challenges due to the rising costs of raw materials, energy prices, and supply chain issues.
On 10 July 2024, TheBusinessDesk.com reported that Sirane had posted a notice of intention to appoint administrators and had engaged Interpath for assistance.
Interpath was officially appointed as the administrator earlier this week, on 15 July.
The administrators are considering various options, including finding a buyer for the business, selling the company's plant and affiliated machinery, and liquidating its remaining assets.
Prior to its financial difficulties, Sirane employed 194 staff members and operated globally, offering a range of packaging and other products such as biodegradable, compostable, and protective materials.
The company serves various sectors, including the food, medical and healthcare, horticulture, and industrial sectors.
The administrators have retained 22 employees to aid in their duties.
TheBusinessDesk.com quoted Interpath's managing director and joint administrator Chris Pole as saying: "Unfortunately, the significant financial difficulties faced by Sirane due to rising raw material costs, increasing energy prices, and supply chain constraints have left the company in an unsustainable position.
“Our primary focus is to support those affected employees, providing them with the guidance and resources needed to file claims from the Redundancy Payments Service.”
The administration team plans to reach out to customers and suppliers to discuss the implications of the administration and the subsequent steps.
In February this year, Sirane expanded its Earth Packaging range to include plastic-free and recyclable flow-wrap films for frozen foods.
Additionally, in December of the previous year, the company introduced a new plastic-free and recyclable butter wrap, called 'Earthfilm Butter-Wrap'.
