Twelve months on from its predecessor was rescued in a pre-pack administration agreement, Euro Closed Loop Recycling has been placed into administration.
The Dagenham-based company, formally known as Closed Loop Recycling, first called in administrators in April 2015.
As the UK’s largest recycler of plastic milk bottles, the firm said the slump in global oil prices and the ongoing supermarket price had led the firm to face collapse.
In May 2015 Dubai-based investment group, Euro Capital, purchased the firm for an undisclosed sum. However, just two months later the firm’s new Director, Afzal Majid warned of “considerable difficulties” in an open letter to stakeholders, stating that the business was losing “at least £300,000 per month” under the conditions.
As a result, staff redundancies and a reduced working week were implemented.
The reasons cited by Afzal included the inability to find a price for its rHPDE product to compete with the price of virgin resin, as well as struggling to compete with demand for waste from overseas buyers.
However, shortly the first bout of redundancies the firm’s plant was fully shut down. After yesterday’s announcement, Manchester-based Cowgill Holloway Business Recovery have been appointed as administrators and the plant and equipment will now be sold.