Quebecor World UK enters administration

The run of bad luck continues for Quebecor World after its UK plant is placed under administration.

The news comes after Quebecor World in Canada and the United States recently filed to obtain protection from creditors. However, the company issued a statement saying that the two incidents were isolated from one another.

"The decision is not related to Quebecor World's filing for credit protection in the United States and Canada and has no impact on its other European facilities," the statement said.

The UK plant, based in Corby, is staffed by 290 employees and specialises in magazines and marketing material. In its statement, the company claimed that a number of web offset investments and the loss of a major contract three years ago had all contributed to the current predicament.

"Quebecor World has made significant investments in this web offset facility in recent years. These investments, combined with important employee and management contributions, were designed to turn around this business but these efforts have been unsuccessful," the statement said.

"Given the overcapacity in the UK printing industry, challenging market conditions and reduced demand for print in the UK market, the company does not believe the situation can be improved without further investment and significant restructuring."