Jobs lost as liquidators appointed at waste firm
AROUND 70 jobs have been lost after a waste recycling businesses run by former Manchester City and England footballer David White and his brother was placed into liquidation.
Paul Stanley and Dean Watson partners at the Manchester office of insolvency firm Begbies Traynor, were appointed to Manchester-based White Recycling after the company ran into financial and regulatory difficulties.
It is understood that White Recycling had been looking to raise additional funds to improve a site in Ardwick, Manchester, which was being operated on behalf of another waste management company, but failed. Meanwhile, margins were being squeezed as a result of the Landfill Tax Escalator.
Most recent accounts, for the period from October 1 2012 to March 31 2013, show the business making an operating profit of £408,805 on sales of £5.7m. In the year to September 30 2012, White made a loss of £967,556 on sales of £11.47m.
Staff at its sites in Manchester and Burnley, were laid off earlier in the week when the Environment Agency withdrew operating licences.
The business, founded more than 50 years ago, was until 2011 known as White Reclaimation. Until its recent difficulties it was recovering and processing around 150,000 tonnes of waste a year.
Mr Stanley told TheBusinessDesk: “It is very sad that a long-standing Manchester business has had to cease operating and all employees are being made redundant from our appointment.
“I would urge the employees affected to get in contact with Stacey Walsh in our Manchester office, as many were sent home when the sites were closed.
“There are a number of other operators in this sector who are finding it very difficult to compete due to the Landfill Tax Escalator, and a demanding regulatory environment.
“The sites have been disclaimed back to the landlords in Eccles ands Burnley and much of the machinery was leased. We are talking to a number of interested parties to see if any parts of the business can be rescued .”
The number for Begbies Traynor’s Manchester office is 0161 837 1700.
