A plastic recycling firm in the North East has gone into liquidation owing dozens of creditors nearly £2m.
Durham-based GFSL operated a mixed-rigid plastics facility in Redcar capable of handling 20,000 of materials a year.
It also used to buy and sell scrap plastics through its trading division, with sites across the UK and Ireland.
Liquidators from Geoffrey Martin & Co were appointed on 15 December to wind up the company.
According to a statement of affairs, GFSL owes £1.99m to 84 creditors.
Total assets available for preferential creditors are estimated at around £7,800.
Geoffrey Martin & Co was not available for comment.
The announcement of the liquidation of GFSL comes after ECO Plastics, one of the leading plastics recycling firms in the UK, was put in pre-pack administration and acquired by a German investment company.
Industry insiders told MRW the struggle of ECO Plastics reflected increasingly challenging market conditions in the UK waste industry. The plastics sector is also affected by the decline in oil prices which are translating into lower virgin polymer prices.
- Prices of mixed-rigid plastics have been added to WRAP’s Materials Pricing Report delivered by MRW