Failed recycling firm leaves creditors out of pocket by £3.1m

The unsecured creditors of a failed copper wire recycling firm are unlikely to see any of the cash owed to them after administrators complete their assessment, understands.

Steven Wiseglass, director at Manchester-based Inquesta Corporate Recovery & Insolvency, was appointed as administrator of Leicestershire firm Pure Copper Recycling late last year.

The company, based in Gaddesby, had stopped trading while it sought new premises. All eight employees have since been made redundant.

The company, founded in 2018, was a granulation specialist which repurposed and recycled unused or discarded copper cables and materials bought from a variety of clients, including scrap merchants, tradesmen, waste sites and electricians.

Documents seen by show that Pure Copper Recycling owed almost £3.12m to unsecured creditors went the plug was pulled on the company. Administrators say they probably won’t see a penny owed to them.

Pure Copper Recycling’s latest available accounts show the firm made a loss of £321,107 for the year endin November 2022.

When appointed, Wiseglass said: “We have been appointed as the administrator of Pure Copper Recycling Ltd.

“Due to a number of issues, the business was unable to continue trading and regrettably the employees have been made redundant.

“We are now working with advisers to assess the value of the company’s assets and will then undertake a sale process with a view to securing a return for creditors.”