Tue, 09 Dec 2014 | BUSINESS SALE
Lincolnshire-based recycling firm Eco Plastics is looking for a new owner to ensure its future as it struggles to keep its head above water.
Its investor Ludgate Environmental Fund said it would write off the carrying value of the company recently, which is £2 million at present, after finding a solution with creditors problematic.
Eco Plastic’s founder and deputy chairman Jonathan Short said in a statement that a new owner is now being sought in order to gain a “long-term platform for future strategic development”.
Financial issues arose after the business opened a new £15 million facility in May 2012 as part of its relationship with Coca-Cola, which was set to increase capacity for Eco Plastics from 100,000 tonnes to 140,000 a year. The initiative called Continuum was to recycle Coca-Cola's bottles and reached half a million bottles in the first year.
Later that year, in December, it also won new funding to the tune of £6 million to support its growth.
Previous investor Jeremy Middleton, of Middleton Enterprises, was positive about the business’ future prospects, and told Insider Media: "Options are being looked at to secure the future of the business. There's been no formal appointment of an administrator. I think with the right level of shareholders and the right backing it might have a good future."
While it has had some “good times” and had entered a working relationship with Coca-Cola, Eco Plastics had proved to be a “disappointment” and hadn’t harnessed its opportunities as well as it might, Middleton added.
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