Jobs go as Plasrecycle goes into administration

Date Published: Thursday 21st July 2016

Plasrecycle, a South East London-based recycling operation, has gone into administration with the loss of 20 jobs, after running out of cash. The Woolwich-based firm, which became operational in 2013, claimed to be the UK’s “first dedicated plant for recycling post-consumer shopping bags and films collected at the kerbside from households”. 

Hunter Kelly and Charles King from EY’s Restructuring team have been appointed Joint Administrators to PlasRecycle Limited. Of the 36 staff that the Company employed, 20 employees have been made redundant.  The remaining staff will continue to process work in progress and assist the Joint Administrators.

The Company was seeking additional investment of £6 million to improve efficiencies and increase capacity.  However, due to the extent of the ongoing losses at the lower levels of production and the level of existing debt used to fund the start-up losses, it was not possible to obtain this investment and the Company effectively ran out of cash. 

PlasRecycle will continue to convert existing work in progress into finished product but not convert new raw material due to the level of losses in processing.  The Administrators are seeking expressions of interest in the Company and its assets and wish to conclude an early sale before production ceases.

The full article can be found here.



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