Tuesday, September 30, 2014

News: Rotherham jobs go as waste firms enter admin


Over 100 staff have been made redundant at a trouble waste site in Rotherham after two firms, Leeds Recycling and Waste Recycling and Diversion Limited, called in the administrators.

Leeds Recycling provided waste collection services to businesses and households in the region whilst Diversion provided waste recycling processing services to local authorities and businesses. They both operated from the same site at Templeborough which was previously operated by Sterecycle, the firm pioneering the use of autoclaving to "pressure cook" household and commercial black-bag waste, which itself called in the administrators in 2012.

Howard Smith and Jonny Marston of KPMG were appointed Joint Administrators of Leeds Recycling and Waste Recycling and Diversion Limited on September 22 and Leeds Recycling sold its customer list to Biffa Waste Services Limited who is responsible for waste collections going forwards.

Upon appointment of the administrators, the majority of the 112 staff (Leeds Recycling: 48 Diversion: 64) have been made redundant. A small number of staff from both companies have been retained temporarily to assist the Joint Administrators with the managed wind down of the businesses.

Howard Smith, associate restructuring partner at KPMG, said: "The companies experienced significant cash flow difficulties in recent months and were unable to meet their financial commitments. We have staff on site to assist employees with submitting their claims to the Redundancy Payments Office and to help with any queries."

Sterecycle, once valued at £56m, operated the Sheffield Road site since August 2008. The world's first commercial scale autoclave plant grew in terms of capacity and job numbers. It had impressed royals, government ministers and investors.

After Sterecycle's demise, the site was returned to landlords - Euro Dismantling Services. Silverdell acquired Sheffield-based EDS in 2012 for £18m. Its founder, Andrew McGee went on to found the WRD Group, which took over the waste processing site at Templeborough in 2013.

Silverdell entered administration in January after selling Euro Dismantling Services and other subsidiaries.

Images: Sterecycle


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