Testerworld Ltd. is one of the largest companies in North East has gone in to administration. Hence, their decision has led to an immediate loss of 1,000 jobs.
Testerworld Ltd is part of the Converse Pharma Group. They are a major supplier of medicines with turnover of around £300m. Additionally, the company trades as DE Group and operates from offices in Great Park, Newcastle, and a facility in Prudhoe, Northumberland. However, the company has now gone in to administration. Moreover, it has ceased trading, along with a group of companies including Doncaster Pharmaceuticals, Crosspharma and Eclipse brands. Last year the Medicines and Healthcare Products Regulatory Agency (MHRA) suspended Testerworld’s operating license. This was over “customer and supplier validation and control protocols”. However, MHRA partially lifted the sanction a month later.
Kroll’s administrators are appointed
The directors of the firm said they had extended a lending facility with the Royal Bank of Scotland and Secure Trust. Moreover, they were confident there were adequate resources to continue trading in the foreseeable future. However, the firm suddenly stopped trading on Thursday and appointed Kroll’s administrators.
“Pharmaceutical distributors and wholesalers form an important link between drug manufacturers and independent pharmacies and their end customers. It is a complex chain which means we will be working closely with the relevant regulators, the management team and the group’s secured lenders to mitigate the impact on the pharmaceutical supply chain. On appointment our immediate objective will be to conduct an orderly wind down of the trading operations. The possibility of some small trade sales of parts of the business, has not been ruled out as we aim to maximize the return for creditors.” Philip Dakin, joint administrator at Kroll commented on the situation.
Job losses at various sites
The pharmaceutical company’s decision to go in to administration caused an immediate loss of 1,000 jobs. Just over a hundred of them will be in the North East. There are 86 members of staff at the company’s Prudhoe base. The company declared 68 of those roles as redundant on May 9. Moreover, the company also declared 13 out of 23 job roles as redundant at Newcastle site.
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