The administrators of Chartham Paper Mill say they will continue to wind down operations at the site - unless a buyer "urgently" steps forward.

The mill was plunged into crisis last month after the UK subsidiaries of its owner, the Arjowiggins (AW) Group, slumped into administration.

It saw 67 staff at the mill near Canterbury made redundant.

Production at Chartham Mill dates back to 1738, and the site has more recently been known for making translucent paper.

Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said: “We continue to explore potential interest from both trade and financial investors in the AW Group’s business and assets.

"Both the Stoneywood Mill [in Aberdeen] and Chartham Mill sites are being given maximum exposure to identify if any party will step forward to purchase these as paper making facilities.

“However, in the absence of any credible interest in the acquisition of either site as a manufacturing facility, the joint administrators will continue to wind down operations at each mill.

“We’d therefore urge any interested parties to contact the joint administrators as a matter of urgency.”

A skeleton staff at Chartham Paper Mill was retained in the hope it could be saved.

Nicholas Harrison was one of the workers who was told he was being made redundant after 31 years of service.

The 54-year-old said: "One minute we’ve got a job, and all of a sudden we don’t have one. We had no knowledge it was going to happen.

"They told us there and then that due to the finances we were being made redundant. Everyone was in shock and we all just walked out. I saw people in tears."

Alistair McAlinden, head of Interpath Advisory in Scotland and joint administrator, added: “While we explore potential interest in the group’s business and assets, we are also liaising with key customers to establish if existing orders can be fulfilled from the group’s paper stocks. Any customer wishing to understand stock levels available should contact us as soon as possible.

"In addition, we continue to work closely with the unions and other UK government support bodies to ensure all employees impacted by redundancy are extended the maximum support possible.”

Two years ago 80 jobs were saved at the site when a successful buyout was negotiated following insolvency proceedings against French parent company Arjowiggens and Sequana.

In all, the joint administrators have made 368 of the company’s 463 UK employees – who were spread between Chartham and the mill in Scotland – redundant.

Administrators are called in when a company experiences cashflow problems that threaten its future.

They are appointed by the firm's management to create a 'breathing space' for the company during which time action cannot be taken over monies owed. A process of financial restructuring then takes place with a view to being able to rescue the company from collapse. This is often through its sale.

The collapse of the Arjowiggins Group's UK subsidiaries was blamed on a "difficult trading environment since the negative impact of Covid-19" and cashflow which meant the group "has been loss-making, with losses exacerbated in more recent times by the significant increases in energy costs and the price of raw materials, including pulp".