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Croxley proposes ceasing manufacturing to focus on wholesale

MEDIA STATEMENT

Croxley proposes ceasing manufacturing to focus on wholesale

Thursday, 21 August 2014

Iconic New Zealand stationery supplier, Croxley Stationery, today announced that it is considering ceasing manufacturing at its Avondale factory from next year in favour of continuing as a dedicated wholesaler.

Croxley announced the proposal to staff today and outlined a staff consultation process which will take place over the next two weeks.

Managing Director David Lilburne says the manufacturing team have made an incredibly valuable contribution to Croxley’s success and have done an outstanding job adapting to change and difficult market conditions.

“I’m truly sorry for our staff that it has come to this but there are a number of external influences that have forced our hand,” he says.
“We are operating in an environment which has seen a decline in postal use and a reduction in demand for traditional paper based office products,” he says. “Emails have replaced envelopes and writing pads.”

“The widespread availability of cheaper imported products is also a factor as is the foreign exchange rate which impacts on our ability to successfully export products manufactured here.”

Mr Lilburne says significant capital investment in machinery would be needed to continue producing traditional stationery items, such as envelopes, and that simply doesn’t stack up in a declining market.

If the proposal goes ahead, the change could result in the loss of over 100 jobs at Croxley’s Avondale factory.

“This is not a proposal we have put forward lightly. We have fought hard to remain in manufacturing in a difficult market,” Mr Lilburne says.

“We looked for alternative solutions but in the final analysis, the long term future of manufacturing at this site does not appear to be sustainable.”

He says Croxley has announced the proposal at this time, and expect to make a final decision by Thursday 4th September.

“We will be working with affected staff individually to assist them through the process. We have a long history of looking after our staff and we will continue to do the right thing by them and their families.”

Mr Lilburne says once a final decision is made, Croxley will also work with its valued customers to ensure there will be no interruption to their supply of products they source from Croxley.

“We are effectively proposing a move from being a wholesaler with some locally manufactured products to being a broad based wholesaler. As well as continuing the supply of our existing product range we would look to broaden and update our product offer to meet the changing needs of our customers.”

If the proposal goes ahead, the company will take a phased approach to ending its manufacturing operations between now and the middle of next year.

Croxley has almost a century of history behind it and is currently the country’s largest stationery wholesaler, supplying a broad range of products to the office and education sector.

Croxley
Croxley is New Zealand’s largest stationery wholesaler and with a history in New Zealand that stretches back almost 100 years. Croxley’s iconic brands such as Olympic, Warwick and Collins are the stories of New Zealand pioneering entrepreneurs and businesses. Over time these household brands have held various associations, gone through mergers and been bought and sold. However they now all reside under the umbrella of Croxley. Croxley is a subsidiary of United States based Office Depot Inc.

ENDS

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