A British plastics packaging firm has reportedly been forced into administration, with the company's management pointing the finger of blame at a new nationwide plastic bag charge in the United Kingdom.
Nelson Packaging, which has made a range of bag and other packaging products, was acquired by U.K.-based Intelipac in 2013, with the then-aim of creating a major new business with sales of 33 million pounds ($45.9 million) and operations in Malaysia, China and Australia.
However reports from the BBC, quoting the Lancashire-based Nelson's managing director Michael Flynn, said the company was forced into administration, a process similar to bankruptcy. Nelson blamed the new 5-pence bag tax and the "corresponding impact on customer and retailer demand.”
The broadcaster, which reported that 40 of the company's staff had been cut by the administrators, understood to be a firm called Leonard Curtis, said Flynn also blamed “aggressive overseas competition.”
The charge for single-use plastic bags came into effect in England last October, bringing the country into line with Wales, Northern Ireland and Scotland, all of whom have levies in place, with all reporting significant falls in bag usage by consumers following the charge's introduction.
A representative for Leonard Curtis was unavailable for comment.