Doric FPD has begun a process that could lead to the closure of its manufacturing site in Burnley, Lancashire, UK, affecting 71 employees.
This follows recurring losses at the facility, combined with rising material and labour costs, which weakened both profitability and cash generation.
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No final decision has been taken.
Doric FPD makes custom-made cake boards, cards, and customised folded card packaging for the consumer and retail industry.
The Burnley operation has die-cutting and roller press capabilities.
Its output includes greaseproof paper liner sheets and folded box boards, including base cards, box inserts, cake collars, card trays, pizza discs, takeaway box lids and U-cards.
In a statement, Doric FPD’s parent company Culpitt said: “Doric FPD has informed its employees of a proposal to close its Farrington Road site in Burnley, where 71 employees are potentially affected.
“This is a proposal only, and no decision has been made. We are consulting with our employees and their representatives to consider ways of avoiding, reducing and mitigating the proposed redundancies.”
Culpitt said the potential closure relates only to the Burnley facility. Other UK operations within the group are not included. The group also owns paper case manufacturer Doric Crimped and cake decorations company Sugarfayre.
The company added: “We recognise this is difficult news for our employees and their families. Our immediate focus is on the employees affected and on carrying out a proper consultation.”
The Lancashire Telegraph reported that the business has not set a closure date if the proposal proceeds. Culpitt director Ahmed Rafique told the publication that choosing employee representatives could take up to a week and a half. A collective consultation of at least 30 days would follow.
On that basis, the process may continue until mid-December or the end of the year.
