MORE than 400 jobs are under threat after receivers were called into a packaging firm in Gillingham.

The Crest Packaging Group, which has factories in Courtney Road, Gillingham, and Wellingborough, Northamptonshire, has been badly hit by increased competition from Europe.

The company has two divisions in Gillingham. Crest Flexible Packaging employs 231 people and Crest Cartons 194, a total of 425. But a spokesman said it was “business as usual” while Simon Michaels and David Gilbert, joint administrative receivers from BDO Stoy Hayward, tried to find a way out of the crisis.

Mr Michaels said: “We are looking to secure an early sale of the business and will continue to trade while we seek a buyer or investor.”

The firm’s plight has been made worse by the strength of the pound against the euro, and over-capacity in the market, leading to growing pressures on pricing and margins.

Despite a turnover of more than £50 million, the company which designs, prints and manufactures flexible packaging and cartons, has been losing money for some time.