Contracting DVD, collapsing CD sales and razor-thin margins are taking their toll on media packaging suppliers. The latest victim is Uden, Netherlands-based Lithorade Packaging Solutions BV which last month declared bankruptcy. It followed the closure in February of its French subsidiary. Salaries of the 85 employees laid off were yet to be paid.

Exponential growth in the music download market had prompted print and packaging group St Ives to sell in September 2008 its loss-making Dutch media packaging division to its management for €2.8m. It became Lithorade BV, co-founded and run by Norbert Koop and Wim Hieltjes.

The Dutch company had acquired in September 2009 for a reported symbolic €1 all CD/DVD paper print activities from Arvato Digital Services in Forbach, France. Sven Deutschmann, CEO arvato digital services EMEA, said at the time he was “pleased to have found a competent partner who will take over the business and also all the [48] employees that are highly skilled and have worked for us for many years.” On that basis arvato and newly-created Lithorade BV Forbach signed “a long-term agreement that shall enhance their partnership.”

Story filed 18.04.10