'Reluctance to use plastics' behind Telford PPE firm's downfall, says MD
People working from home, a reluctance to use plastics and a general downturn in the economic situation have been blamed for a 60-year-old Telford company appointing liquidators to wind up the business.
Ambroplastics Limited, based at Chamber House, Halesfield 13, in Telford, was voluntarily wound up by managing director Phil Caudle at a general meeting of the members of the company in December.
Mr Caudle said the Covid pandemic, which saw the company pivot to produce protective equipment, had given it some breathing space.
The creditors' voluntary liquidation process has seen Timothy Higgins and Edward Williams, of PricewaterhouseCoopers LLP, appointed to liquidate the business.
There have been 14 redundancies. During the pandemic the company had employed 23 people.
Ambroplastics, incorporated as a business in 1962, was a UK-based manufacturer of presentation products, specialising in polypropylene.
It gained praise for pivoting its business to make protective face visors for key workers and other personal protective equipment.
The company also donated hundreds of units to the Nightingale Hospital in Birmingham via a customer who was volunteering at the temporary hospital.
However the general decline in the use of plastics had led to the winding up of the business.
Mr Caudle said: "There is a reluctance to use plastics.
"The pandemic gave everyone a breather at that time but it led to people working from home and to less demand. There was Brexit and the general economy situation led to a downturn.
"The company was set up in 1962 and this has come just after the company's 60th anniversary.
"I had been with the business for 22 years and there were numerous people who had been here longer than I have."
In a statement Mr Higgins said: "The company, based in Telford, is a manufacturer of office supplies, focusing on plastic wallets and other similar products.
"The company has been impacted by challenging conditions as a result of the pandemic and the decline in the use of plastic packaging.
"Sadly, the position of the company means that all 14 employees have been made redundant immediately following the appointment.
“We know that this will be a difficult time for staff, especially in the current economic environment. Our team will be doing everything possible to support the employees affected.
"We will also be focusing on attempting to recover value for the company’s creditors, including dealing with any expressions of interest for the company’s plant and machinery and other assets from third parties.”
