Colin James Posted August 3, 2017 Report Posted August 3, 2017 Breaking News: We are hearing some disturbing reports that Gelpack Hereford told all of their staff to go home at 2pm today and to return for a meeting on Tuesday. Further updates to follow. Remember where you heard it first...
K.Butt Posted August 3, 2017 Report Posted August 3, 2017 Breaking News: Gelpack_Logo.png We are hearing some disturbing reports that Gelpack Hereford told all of their staff to go home at 2pm today and to return for a meeting on Tuesday. Further updates to follow. Remember where you heard it first... Oh no I hope they are not closing, this is bad news for Hereford if they are.
Bill Thomas Posted August 3, 2017 Report Posted August 3, 2017 Breaking News: Gelpack_Logo.png We are hearing some disturbing reports that Gelpack Hereford told all of their staff to go home at 2pm today and to return for a meeting on Tuesday. Further updates to follow. Remember where you heard it first... Geez! Your quick off the mark with this, there is nothing on the HT or any of the radio stations yet, lets hope its just something technical and nothing more.
Colin James Posted August 3, 2017 Author Report Posted August 3, 2017 If this employer closes it would mean 190 job losses over 3 sites. Madley, Grandstand Road and Central Warehousing at Morton.
Paul Jones Posted August 3, 2017 Report Posted August 3, 2017 This is terrible news for Hereford. I hope they can find a better solution to closure if this is the case.
ragwert Posted August 3, 2017 Report Posted August 3, 2017 Pretty sure they were given some sort of huge loan a few months back
Ubique Posted August 3, 2017 Report Posted August 3, 2017 From HT 30 May 2017 packaging company which has been producing in Hereford for 55 years has received a £10 million loan, allowing them to serve more customers over the coming years. Gelpack Excelsior, which is based off Grandstand Road, has agreed a new funding deal with Bibby Financial Services (BFS), as part of a business loan secured on its assets. The business produces films, bags, liners and sacks for a range of industry sectors, including food and beverage, medical and pharmaceutical, bedding and furniture manufacturing. It is one of the largest privately owned polyethylene packaging manufacturers
M. Preece Posted August 3, 2017 Report Posted August 3, 2017 Unfortunately I am afraid this is true, a friend of mine who started working there earlier this year has just been laid off, not sure even if he is going to get paid yet.
Colin James Posted August 3, 2017 Author Report Posted August 3, 2017 Oh no I hope they are not closing, this is bad news for Hereford if they are. It is not sounding good from the reports I am hearing. There is an emergency meeting next Tuesday from my understanding but potentially almost 200 jobs at risk here.
Irena Sulecka Posted August 3, 2017 Report Posted August 3, 2017 I also have 2 friends that work here, still nothing on the HT website.
Denise Lloyd Posted August 4, 2017 Report Posted August 4, 2017 Shocking news for the employees and Herefordshire. I am surprised that commenters are expressing shock that HT have not picked up on this report - remember they knock off early and are not back in until Friday morning then pick their threads up from sites like HV and Facebook
Clarkester Posted August 4, 2017 Report Posted August 4, 2017 Terrible news. My first proper job was at Gelpack back in 1989, I met the then future Mrs Clarkester there. And have made many, many good friends there, several of whom still work there. I hope that the news isn't as bad as it looks at the moment. Very sad...
Clarkester Posted August 4, 2017 Report Posted August 4, 2017 Oh, and I designed their still used logo when I was Costing Assistant. Microsoft Word Art and an HP Deskjet 550...
Denise Lloyd Posted August 4, 2017 Report Posted August 4, 2017 http://www.herefordtimes.com/news/15454078.Administrators_appointed_to_Hereford_packaging_firm/?ref=mrb&lp=1
H.Wilson Posted August 4, 2017 Report Posted August 4, 2017 http://www.herefordtimes.com/news/15454078.Administrators_appointed_to_Hereford_packaging_firm/?ref=mrb&lp=1 Not exactly breaking news now, the HT was again very slow on the uptake of such a big story for Hereford
megilleland Posted August 7, 2017 Report Posted August 7, 2017 This doesn't sound good. They have a charge against the company here. In the last ten years Bibby Financial Services Limited has deliberately destroyed thousands of good businesses - don't become one of them! Whatever you do please read the stories of former clients of Bibby Financial Services before you sign an enormous contract in some cafe or car park. After you have read them, please tell yourself: 'Beware of Bibby Financial Services'!
herefordman75 Posted August 7, 2017 Report Posted August 7, 2017 From reading the comments, the one thing that stands out is the "£10 million pound loan secured on assets" - sounds to me like BFS have called in the debt, Gelpack can't repay it, so BFS have started proceedings to recover the money. This BFS lot sound a lot like a dodgy bunch of loan sharks to me.....hopefully the staff will get a redundancy pay out and not be left to struggle.
Colin James Posted August 7, 2017 Author Report Posted August 7, 2017 From reading the comments, the one thing that stands out is the "£10 million pound loan secured on assets" - sounds to me like BFS have called in the debt, Gelpack can't repay it, so BFS have started proceedings to recover the money. This BFS lot sound a lot like a dodgy bunch of loan sharks to me.....hopefully the staff will get a redundancy pay out and not be left to struggle. A redundancy payout is pretty poor in mosts cases, especially if you have only been working there for 6 months.
herefordman75 Posted August 8, 2017 Report Posted August 8, 2017 @Colin - very true, very unlikely to receive anything with less than 12 months service. Anyone over that is usually paid at a rate of 1.5 times the weekly wage multiplied by the years of service, so some long term employees may see a reasonable pay out. Unfortunately any pay out will be taken into account when they go to see about any form of benefit help - essentially, they will have to use their redundancy pay to live off until they either find another job, or it runs out. Reading comments on FB this morning, they are closing all 3 sites......
Colin James Posted August 8, 2017 Author Report Posted August 8, 2017 UPDATE: Unfortunaltey following todays meeting it looks like everyone has lost their job.
megilleland Posted August 8, 2017 Report Posted August 8, 2017 There were 12 charges registered against Gelpack Industrial Ltd. 11 of these charges have been satisfied since 1989. The only one outstanding is with Bibby Financial Services Ltd (as security trustee). Seems odd that this charge was created in May and the financial problems emerged 2/3 months later. What is a security trustee?Paul Sutton Property Investment & FundsA security trustee is a person or corporate entity which holds security for the benefit of others. The security involved may comprise a charge over property, a debenture over the assets and undertaking of a company, a bank account charge or a combination of other types of security for the performance of obligations.Security trustees are often used in structures such as secured loan notes, where the benefit of the security is held on behalf of the loan note holders as a group. A security trustee is usually (but not always) an independent entity which is regulated by the Financial Conduct Authority or equivalent financial services regulator.Here are some of the main reasons for using a security trustee as part of a structure:If the beneficiaries of the security are too numerous for them all to appear on the relevant register (such as the Land Registry in the case of a charge over property).If the composition of the group of beneficiaries is likely to change over time (such as in the case of loan note holders) – appointing a security trustee in this situation avoids the inconvenience and cost of transferring the underlying security each time a new beneficiary is added or an existing beneficiary transfers its interest. In order to demonstrate independence from the parties associated with the debtor, originator of the debt obligation, the chargor or the subject matter of the security. In other words, if something goes wrong and the security needs to be enforced, the security trustee would act impartially in taking the necessary steps to enforce the security and distribute the proceeds of enforcement to those entitled.
megilleland Posted August 8, 2017 Report Posted August 8, 2017 UPDATE: Unfortunaltey following todays meeting it looks like everyone has lost their job. Has somebody told the Hereford Times. They appear very quiet on this. Has Jesse had a word in their ear? I am surprised that no one has blamed Brexit yet.
Colin James Posted August 8, 2017 Author Report Posted August 8, 2017 Has somebody told the Hereford Times. They appear very quiet on this. Has Jesse had a word in their ear? I am surprised that no one has blamed Brexit yet. Yes me too :)
Colin James Posted August 9, 2017 Author Report Posted August 9, 2017 I have obtained the letter handed out to the staff at the meeting yesterday.
ragwert Posted September 23, 2017 Report Posted September 23, 2017 Gelpack have a new ownerhttp://www.herefordtimes.com/news/15552845.Hereford_packaging_firm_Gelpack_sold/?ref=ar
Colin James Posted September 23, 2017 Author Report Posted September 23, 2017 Gelpack have a new owner http://www.herefordtimes.com/news/15552845.Hereford_packaging_firm_Gelpack_sold/?ref=ar Yes, I added this to our Facebook page yesterday and forgot to post it on here. Hopefully, this will develop into more jobs again in the future.
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