News

Packaging Firm Goes Under

Paul Cooper, Operations Director

Machinery and equipment from Lincolnshire packaging firm Karmpak Limited is being sold off following the collapse of the business.

Based on the Caenby Corner Estate at Hemswell, Karmpak had a turnover of close to a million pounds a year but hit problems when it lost one of its major contracts. The business went into liquidation in November.

Liquidators Jacksons Jolliffe Cork of Grimsby who are handling the company’s affairs have now instructed industrial auctioneers CJM Asset Management to dispose of the firm’s machinery and equipment.

The kit is being sold in a sealed bid tender sale . . . expected to raise around £50,000  . . . which is already attracting national interest.

CJM Director Paul Cooper said: “Packaging is a very competitive, high-volume-low margin activity and the firm was hit by the loss of a contract that accounted for a substantial proportion of its business and a couple of substantial bad debts. It proved too much.”

“Because of the specialist nature of the equipment it has been decided to sell it by tender, rather than by public auction. We’re having a view day on the site on Tuesday 7th February and interested parties then have until Friday 10th February to lodge their bids.

“The sale extends to sixty lots and includes items that are expected to make into five figures. The star item is a Langston Masson 511 Flexo printer slotter, with a take off conveyor and switchgear, that’s expected to sell for £15,000 - £20,000.”

“There’s also a folding and gluing machine that is worth in the region of £10,000 - £15,000.”

“Apart from the specialist packaging machinery, there’s a selection of general purpose equipment ranging from pedestrian pallet trucks and compressors to a diesel forklift truck.”

“There’s also a small selection of office furniture and business equipment.”

Paul added: “The sale’s prompted a lot of interest, from all over the place. We’ve been fielding enquiries from all over the UK, including Scotland and Northern Ireland.”

Viewing is by appointment at the site on Tuesday 7th February. The tender deadline is at Noon on Friday 10th February. Catalogues are available from CJM or can be downloaded free of charge from the firm’s website: www.cjmasset.com

For further information or comment please contact Paul Cooper at CJM Asset Management

on 01724-334411.          

David Newman - Newman Walker Associates - 30th January 2006