Recycling firm Greencycle enters administration

Durham county council, Congleton borough council and Crewe and Nantwich borough council have also all urged their residents to continue to recycle after it was revealed that the Enfield-based firm had entered administration due to “financial difficulties”.

Ian Corfield and Richard Fleming of administrators KPMG, who have been appointed to Greencycle, confirmed that the company had ceased to operate, with 220 out of 228 employees having been made redundant while the remainder will work with them to wind down the firm.

Mr Corfield, restructuring director at KPMG, said: “Recent volatility in the waste materials markets is affecting many organisations in the recycling sector. This contributed to the fact that Greencycle has been lossmaking in recent months which fatally impacted its cashflow.”

Greencycle came to national media prominence late last year when the downturn in demand for recycled material hit the sector, with camera crews from the BBC, ITV and Sky News all filming material that had been stored at its County Durham site (see letsrecycle.com).

When contacted this morning by letsrecycle.com, the company's chief executive Neil Rippon declined to comment on the company's situation

Effect

Reacting to the situation, Durham county council said it was working with the administrators to introduce a contingency plan for collections, while Congleton council said it would “work very closely” with neighbouring Crewe and Nantwich to deliver waste to the Pyms Lane depot in Crewe instead of Greencycle's site at Springvale Industrial Estate in Sandbach.

The councils have all urged residents to continue to recycle but Durham county council warned that there could be delays experienced throughout the affected regions under the temporary measures.

Oliver Sherratt, head of direct services at Durham county council, said: “The main priority is to ensure that this important service is maintained with minimum disruption to residents. Some delays are likely over the next few days we would ask people to bear with us and continue as normal with their recycling”

“For the next few days in some areas residents may notice refuse collection vehicles being used rather than kerbsider sorting vehicles. These materials will all go for recycling, and is just a temporary measure whilst vehicle safety checks, staff recruitment and training are taking place,” he added.

From April 1, the responsibility for waste services for all the affected local authorities will fall to newly formed unitary authorities, with Durham county council joining with the Durham councils and Congleton and Crewe and Nantwich becoming part of Cheshire East when it is formed along with Cheshire West.

And, Alan White, interim head of environmental services at Cheshire East council, said that, in the wake of the Greencycle situation: “Cheshire East will now look at the potential rationalisation of the recycling schemes between the Congleton and Crewe areas.”