News: Firm with 420 staff plunges into administration after ‘challenging’ months

News: Firm with 420 staff plunges into administration after ‘challenging’ months

Another Lincolnshire Highlights news story…

A recycling company that employs 420 staff has been plunged into administration.

Administrators have been appointed to the Caythorpe based recycling company Mid UK recycling as of Wednesday, June 16.

Mid UK was founded as a family business in December 1997, and has grown to £37m in turnover and currently employs 420 staff.

The company has been sold to New Earth Solutions, a subsidiary of the waste recycling group Beauparc.

 

Mid UK say that the decision has been down to a recent fire that has made it a ‘challenging’ nine months for all involved in the company.

The company’s managing director, Chris Mountain, said in a statement: “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.”     

The company recycles a combination of agricultural, commercial and industrial waste, green waste, paper and cardboard, plasterboard and wood wastes.

It also specialises in providing renewable fuels, skip hire and waste collections alongside its transport fleet.

Mid UK’s Lincolnshire headquarters was devastated by fire in September last year.

Fire at MidUK Recycling, Barkston Heath
(Image: David Dawson)

Ten fire crews from Lincolnshire Fire and Rescue were called to the scene after a number of waste materials had caught fire.

The company apologised for the impact that the incident had on local residents in the area.

Toby Underwood and Mike Denny have now been appointed as joint administrators to the company.

Confirming the appointment, Mike Denny, restructuring director for PwC said: “We are delighted to have secured a future for the business and employees of Mid UK.

“The past nine months was a very 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 liquidity crunch.  

“It has proved very difficult to secure a sale against such a backdrop so to have managed to complete a transaction and preserve the employment of over 420 staff in an area where there are very few substantial employers is particularly pleasing.”

 



Source by [author_name]

Leave a Reply

Your email address will not be published. Required fields are marked *

Site Hosted and Maintained by HostBanquet - Lincolnshires Own Hosting Provider