According to reports in the Watertown newspaper Republican-American, Risdon is facing the possibility of bankruptcy unless help comes soon because Sovereign Bank cut off its line of credit last week and swept its accounts.
Temporary layoffs
No longer able to pay its employees, the company had to halt production and force about 300 workers to accept temporary leave.
Republican-American quoted an alleged email from company director Stephan Frater to his attorney saying: “We need some relief in the coming days or it’s over and we’ll read about it in the business section of every paper in the state if we file Chapter 11.”
The attorney representing Risdon International confirmed to CosmeticsDesign.com that “jobs had been furloughed” but declined to confirm further details or provide additional comment.
With a history that dates back over 90 years, Risdon is a major player in cosmetics packaging, supplying leading brands including Estee Lauder, L’Oreal, Avon and Yves Rocher.
The company specializes in perfume and make-up packaging and components such as lipstick tubes, mascara brushes, finishes and caps and closures.
International expansion
In an effort to become "the leading supplier" of cosmetics packaging components worldwide Risdon made a number of investments overseas in 2007.
Risdon acquired metal packaging specialists Decorpart Asia in July of that year. Before the acquisition Decorpart Asia was the Chinese wing of Decorpart, a bankrupt UK-based firm which cited the cost of building up the Asian business among the causes of its demise.
In the same year Risdon also bought the Chinese business Inmagine Plastics and opened a second manufacturing facility in Mexico.