A PHARMACEUTICAL wholesaler, which has a base in Prudhoe, has gone into administration.
Administration was started on May 6 for Doncaster Pharmaceuticals Group Limited, Testerworld Limited and Eclipse Generics Limited, which support independent, community pharmacies.
Part of the Converse Pharma Group, the companies, trade as Doncaster Pharmaceuticals, DE Group, Crosspharma and Eclipse.
The companies employ around 1,000 people; the group was formed in 2013 following a management buy-out of the three companies, with a combined turnover of around £300m.
Philip Dakin, Michael Lennon, and Jimmy Saunders, all of Kroll, have been appointed joint administrators.
Philip said: “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 maximise the return for creditors.”
The company has ceased to trade with immediate effect and joint administrators say they are working with the relevant authorities to provide support to employees affected.
The DE Group, which works out of Regent's Drive, in the Low Prudhoe industrial estate, also has a base at Newcastle's Great Park.
Coun. Gordon Stewart, who represents Prudhoe South on Northumberland County Council, said: "I realise this will cause employees and their families a great amount of concern.
"I have been contacted by residents who have asked for additional information.
"I am in contact with the DWP Jobcentre Plus who are being proactive in supporting those in these difficult times."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here