The future of almost 500 jobs are back on the line after a deal to save a north-east paper mill from collapse fell through.
This afternoon it was confirmed the discussions between Arjowiggins and a preferred bidder for the Stoneywood Mill had ended without a sale.
In a last ditch attempt to save the business talks have now began to take place between the joint administrators and senior management team in order to try to secure a sale.
A spokesman for the joint administrators said: “The joint administrators have begun discussions with a management buyout team (MBO) after negotiations with a preferred bidder ended without a sale. Discussions will now be progressed with the MBO team, Scottish Enterprise and other interested parties over the coming weeks to explore whether a sale can be secured.”
The future for nearly 482 workers at the Arjowiggins Stoneywood plant was plunged into doubt in January after its parent company failed to sell it.
The proposed deal was for the sale of the assets of the business as a going concern and the retention of all staff.
In the meantime, it remains “business as usual” and the plant continues to operate.