A Lincolnshire recycling business employing over 420 staff has gone into administration before being immediately sold to a major rival.
In an official statement, Toby Underwood and Mike Denny of accountancy firm Price Waterhouse Cooper were today (Wednesday) appointed Joint Administrators of Mid Recycling UK Limited (“Mid UK”).
With its head office and key materials recycling facility based in Caythorpe, the business operates from four other sites in Lincolnshire - Barkston Heath, Colsterworth, Market Deeping and South Hykeham providing a range of recycling services for businesses and local authorities across Lincolnshire and around the country.
Immediately following the appointment of administrators the business and assets of the company were sold to New Earth Solutions (West) Limited, a subsidiary of the Irish-based waste recycling group Beauparc.
Mid UK recycles a combination of agricultural, commercial and industrial waste, green waste, paper and cardboard, plasterboard and wood waste. The business also provides renewable fuels, skip hire and waste collections alongside its transport collection fleet.
Mid UK was founded as a family business by Chris Mountain in December 1997, and has grown to a £37m turnover business employing over 420 staff.
Confirming the appointment, Mike Denny, Restructuring Director for PwC, commented: “We are delighted to have secured a future for the business and employees of Mid UK.
"The past nine months was a difficult trading period for the business and a combination of the impact of a major fire at the Barkston site, associated losses and tightening credit led
to a shortage of working capital.
“It is pleasing to complete the transaction and preserve the employment of over 420 staff in an area where there are very few substantial employers is particularly pleasing.”
Mid UK managing director Chris Mountain added: “Since the fire in September it has been a challenging period for employees, customers and our supply chain. However this sale provides the opportunity for Beauparc to take the business forward and onto the next phase of its growth and development.”