Scotland based Tullis Russell Papermakers, part of Tullis Russell Group Limited, has entered administration.
Blair Nimmo and Tony Friar of KMPG LLP were appointed Joint Administrators of the business on 27 April. The company ceased trading with immediate effect.
325 of the 474 staff were made redundant. The remaining 149 employees have been retained to complete some orders.
Tullis Russell Papermakers, which sold 126,000 tonnes of paper in the year to 31 March 2014, has incurred cumulative losses of £18.5m (€25.84m) over the last five years, largely as a result of weakening demand and pressure on its margins.
The company recently also faced a number of specific challenges, i.e. the exchange rate development, higher costs for wood pulp and the loss of a major customer due to insolvency proceedings (believed to be Paperlinx UK).