48 jobs saved as Black Country recycler is bought out of administration

A BLACK Country recycling business has been saved from going out of business after a deal was struck to sell the company out of administration.
 
The deal struck by FRP Advisory to sell Lye-based Overton Recycling to Environcom has saved the jobs of all 48 workers at the business. The terms of the deal have not been disclosed.

Environcom, the UK’s largest electrical reuse and recycling specialist, has acquired the whole of Overton’s business plus its assets.

FRP Advisory partners Steve Stokes and Gerald Smith were appointed joint administrators of Overton Recycling in November. Their appointment followed a sharp deterioration in trading earlier last year which had impacted cash flow and resulted in the company entering into a Company Voluntary Arrangement.

The joint administrators had been trading Overton Recycling, which specialises in the recycling of refrigerator and other electrical goods, as a going-concern, under licence granted to Environcom, for the past two months while conducting active sales discussions in order to secure the future of the business.

The joint administrators considered alternative approaches for the Overton assets, however, they concluded that a combined sale of the business and assets to Environcom offered both the best return to creditors as well as securing the jobs of the workforce.

The business will continue to trade as normal under new ownership from the same premises at Lye.
 
Steve Stokes said: “The administration process allowed for Overton Recycling to continue to trade while we attempted to achieve a sustainable future for its recycling processing business and all of its workers, culminating in the successful sale to Environcom.

“We are delighted that thanks to the sale, the recycling business can continue servicing its loyal customer base under the ownership of Environcom and we wish the enlarged group every success for the future.”