The administrators of plastics recycler Ecotech London have confirmed that its entire workforce of 47 was laid off before they took over earlier this month.
Charles King and Hunter Kelly from Ernst & Young were appointed joint administrators to the firm, which runs a recycling plant in Essex, on 6 June.
The administrators said all staff were made redundant on 31 May, prior to their appointment.
King said: “Ecotech has faced increasing difficulties over a prolonged period due to the decline in the crude oil price, which impacted on the selling price and overall demand.
“This, coupled with a decline in yields due to feedstock quality and operational issues with the plant, has resulted in significant losses for the business.”
The joint administrators are exploring expressions of interest in the company and its assets.
Ecotech specialised in the recycling of plastic bottles which produced PET flakes for use in products for food packaging and other industrial applications. The business is the exclusive UK partner of Germany’s STF Group, a European producer of recycled PET.