Question reference: S6W-11225
- Asked by: Douglas Lumsden, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 11 October 2022
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Current status: Answered by Ivan McKee on 24 October 2022
Question
To ask the Scottish Government when Scottish Enterprise was first made aware of problems at Arjowiggins.
Answer
Scottish Enterprise has worked closely with Arjowiggins and its partners since the successful management buyout in 2019. Scottish Enterprise were aware of the challenging trading conditions faced by the company since 2020, which included the negative impact of the pandemic and more recently the significant increases in energy costs and the price of raw materials.
Most recently, Scottish Enterprise helped with detailed options analysis and the pursuit of a buyer for the business, and an initial non-binding offer was received for Arjowiggins in 2022. Scottish Enterprise were advised on 20 th September 2022 that the preferred bidder had decided not to proceed with the acquisition citing the risks associated with the current economic environment, which resulted in the company entering into administration on 22 nd September 2022.