Negotiations with a preferred bidder for an Aberdeen paper mill have fallen through.
In January, Stoneywood Mill went into administration – putting nearly 500 jobs at risk – after owner Arjowiggins failed to sell the plant in a deal before Christmas.
The company claimed an increase in pulp prices globally – along with the collapse of the deal – were the reasons the 249-year-old site was placed into administration.
In March it was revealed that a preferred bidder had been selected, however administrators announced on Tuesday that negotiations had ended without a sale.
A spokesman from FRP Advisory said: “The joint administrators have begun discussions with a management buyout team (MBO) after negotiations with a preferred bidder ended without a sale.
“Discussions will now be progressed with the MBO team, Scottish Enterprise and other interested parties over the coming weeks to explore whether a sale can be secured.
“In the meantime, it remains ‘business as usual’ and the plant continues to operate.”