A Lincolnshire recycling company which has been impacted by a string of serious fires was taken over by administrators and sold within 24 hours.
Mid UK, headquartered in Caythorpe, Lincolnshire, employs 420 staff also and operates from six other sites in Lincolnshire.
Toby Underwood and Mike Denny were appointed Joint Administrators of Mid Recycling UK Limited (“Mid UK”) on Wednesday, June 12.
Immediately following the appointment of administrators the business and assets of the company were sold for an undisclosed sum to New Earth Solutions (West) Limited, a subsidiary of the waste recycling group Beauparc.
Mid UK recycles a combination of agricultural, commercial and industrial waste, green waste, paper and cardboard, plasterboard and woodwastes.
The business also provides renewable fuels, skip hire and waste collections alongside its transport fleet.
It was founded as a family business in December 1997, and has grown to a £37 million turnover company.
The business was hit by a series of serious incidents in recent years which had significant financial penalties, including a number of fires on site.
In 2018, the company was fined £100,000 following a serious fire on site, plus the £230,000 it paid out to Lincolnshire Fire and Rescue to deal with the blaze.
Confirming the appointment, Mike Denny, Restructuring Director for PwC, said: “We are delighted to have secured a future for the business and employees of Mid UK. The past nine months was a very difficult trading period for the business and a combination of the impact of a major fire at the Barkston site (Ancaster), associated losses and tightening credit led to a liquidity crunch.
“It has proved very difficult to secure a sale against such a backdrop so to have managed to complete a transaction and preserve the employment of over 420 staff in an area where there are very few substantial employers is particularly pleasing.”
Mid UK Chris Mountain added: “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.”