Jobs may be lost as Cope Allman buys up Jaycare

Mar 1 2008 by Chris Knox, The Journal

PLASTICS firm Jaycare has been bought by a Portsmouth-based company bringing the possibility of a number of redundancies, The Journal understands.

The firm was put into administration in mid-January and the 200 staff were told yesterday that the company had been bought by Cope Allman Plastic Packaging.

Neither Cope Allman or Jaycare’s administrators KPMG were prepared to confirm the reports. However, The Journal understands that representatives of Cope Allman have visited the Jaycare factory at the New York Industrial Park, North Tyneside.

Staff say they were told the company had a new owner and were advised there could be redundancies.

A spokesman for KPMG acknowledged that it was in discussion with Cope Allman but said that it was “not prepared to release an official statement until a deal was completed”.

Similarly, Cope Allman would not confirm its position, but did not deny the reports. A company spokesman said: “There is nothing official to say at present. However, we are looking to issue a statement early next week.”

An insider at Jaycare, which manufactures drugs packaging, had previously said that the factory would have closed if a buyer was not found and that many of its staff only found out that it had been placed in administration after reading The Journal.

Jaycare, which has been on North Tyneside for 17 years, made 24 workers redundant before Christmas and said at the time it was in negotiations about the future of another six staff. It blamed losing a major contract it had held for a decade for the job losses and pointed to increased polymer, energy and transport costs.

The business, which until recent years had an annual turnover of about £18m, saw its profits peak at £4.9m in the year to April 2004, then plummet to £2.3m in 2005 before going £426,000 into the red in the 12 months to April 2006, which is the last year for which its accounts are available.

The last seven years have been tumultuous for the business with a management buy-out in 2000 followed four years later with its purchase by a venture capitalist.