Mon, 16 May 2016 | ADMINISTRATION
A plastic milk bottle recycling firm based in Dagenham has been placed in administration less than a year after being acquired by an investment company in Dubai.
Euro Closed Loop Recycling was created less than 12 months ago following the acquisition of Closed Loop in a pre-pack administration agreement by Euro-Capital, a Dubai-based investment company. The Dagenham plant, which operates under Euro Closed Loop Recycling, was formed in 2008 and recycled an average of 35,000 tonnes of plastic milk bottles per year.
Once acquired in 2015, Euro-Capital scaled back operations at Euro Closed Loop Recycling because the plant was losing an estimated £300,000 per month, according to the new owners. The investment firm also said that they could not compete with the cheaper-to-produce virgin plastics.
Jason Elliott and Craig Johns of Manchester-based insolvency firm Cowgill Holloway Business Recovery LLP have since been appointed as joint administrators. They have been tasked with finding a buyer for the optical sorting, granulation and washing machinery used in the plant, collectively said to be worth millions of pounds.
Selling off the assets of the distressed business represents a huge blow for the UK recycling industry. Furthermore, significant investments had already been made in the recycling firm, with £4.7 million coming from Sevenoaks investment company Foresight Group and grants from the Waste & Resources Action Programme (WRAP) charity and London Development Agency (LDA).
Contact the administrators
See the full list of the latest businesses in administration.
Represents an opportunity for a hospitality acquirer seeking a restaurant with additional takeaway in Harrow.
LEASEHOLD
Wedding venue business with accommodation and large restaurant for sale in Cambridgeshire. With a capacity for up to 110 wedding guests, the16th Century traditional building boasts original features, open fireplaces, exposed beams and elegant interio...
LEASEHOLD
Restaurant for sale in Hartley Wintney, Hampshire. Offering a 3-bed flat, a large car park, and a detached property.
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.