Lincolnshire recycling firm Mid-UK Recycling Limited went into administration before being immediately sold to rival company New Earth Solutions (West) Limited.
Yesterday an official statement appointed Toby Underwood and Mike Denny of accountancy firm Price Waterhouse Cooper as Joint Administrators of Mid-UK Recycling Limited. Immediately after, the business and assets of Mid UK were sold to the subsidiary of the Irish-based waste recycling group Beauparc- New Earth Solutions (West) Ltd.
Mid UK recycles a combination of commercial and industrial waste, green waste, agricultural, plasterboard, paper, cardboard and wood waste. The firm provides renewable fuels, skip hire, waste collections and a transport collection fleet. The business employs over 420 staff, its head office and key materials recycling facility is based in Caythorpe, but the company also operates from four other sites in Lincolnshire- Barkston Heath, Market Deeping, Colsterworth and South Hykeham. Mid UK provides a variety of recycling services for businesses and local authorities across Lincolnshire and throughout the UK.
The company was started as a family business by Chris Mountain in 1997, it has grown sizeably to a £37m turnover business. In recent years, the business suffered a number of fires on site which had significant financial penalties. The company was fined after a fire engulfed around 4,000 bales of waste at its Barkston Heath site, the firm was fined £100,000 and agreed to pay £230,000 to Lincolnshire Fire and Rescue for dealing with the blaze. Twelve fire crews battled a large blaze at the same site in September last year, believed to have been caused by a battery.
Chris Mountain said; “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”
Mike Denny, Restructuring Director for PwC, commented: “We are delighted to have secured a future for the business and employees of Mid UK.
"The past nine months was a 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 shortage of working capital.
“It is pleasing to complete the transaction and preserve the employment of over 420 staff in an area where there are very few substantial employers is particularly pleasing.”