Recycling company Greencycle went into administration last week after the companys revenues were hit by volatile recyclate commodity markets. Directors called in KPMG administrators Ian Corfield and Richard Fleming on 24 March 2009 after the business, which collected and disposed of recyclables for local authorities, had financial difficulties.
Corfield said: Recent volatility in the waste materials market is affecting many organisations in the recycling sector. This contributed to the fact Greencycle has been loss making in recent months which fatally impacted its cash flow.
Greencycle has its headquarters in Middlesex, London. But the local authorities it serviced were mainly in Durham in the North East and Congleton, Cheshire. A KPMG spokeswoman said:
With regards to the management of the ongoing contracts, it will be up to the local authorities to decide what to do.
But she added that Durham County Council will manage the contracts left by Greencycle inhouse.
The KPMG spokeswoman told MRW: It [Greencycle] is not being sold because it was not a viable sale opportunity, it is being wound down.
The company has stopped operating and 220 of the 228 employees have been made redundant, the remaining staff will work with the administrators. Machinery and other assets will be auctioned off.
Residents in Durham and Congleton should contact their local authority if they have questions about the collection service that was provided in their area by Greencycle.