Administrators confirm Envirotyre asset sale
RSM Tenon, the company responsible for administrating Envirotyre, a Carlisle-based company specialising in the processing and reclamation of waste tyres, has confirmed that Envirotyre is in administration and that an asset sale has been initiated. The administrators also confirmed that the business has ceased trading and all 30 jobs have been made redundant.
Envirotyre based in Carlisle is not to be confused with Envirotyre UK Ltd based in Boston, which serves the tyre industry (collection and recycling of all waste tyres) in Central and Eastern England. Following the initial reports of the administration of its Carlisle-based namesake, directors of Envirotyre UK wrote to Tyres & Accessories explaining that the Boston-based business “is in no way connected to Envirotyre Ltd based in Cumbria.” This Central and Eastern English business run by Envirotyre UK Ltd “continues to trade normally” according to company director Richard King.
Founded in 1995 and backed by private equity, Envirotyre (based in Carlisle) expanded as a result of legislation that banned the landfill of whole and shredded used tyres. It operated a hub and processing centre in Durham, tyre collection facility near Coatbridge and administrative HQ in Carlisle.
The company also had the exclusive UK licence for Compactyre, a tyre processing technology that compresses used tyres and dramatically improves the efficiency of processing and onward transport. The company also possesses the UK licence for the Compactyre technology, a “patented, hydraulically-driven compactor that punctures and compresses a tyre to less than one-quarter of its original size”, making waste tyres easier to handle.
It entered a CVA (company voluntary arrangement) in December 2010 and continued to suffer trading difficulties in early 2011. According to an official statement from the administrators, RSM Tenon is now marketing the assets and goodwill for sale, and are urging interested parties to come forward as soon as possible. Earlier news reports suggested the firm, based on the Kingmoor Industrial Estate in Carlisle, provided tyre disposal services to around 1,500 tyre outlets across the region. The firm’s assets were valued at £1.822 million at the beginning of 2010. The company was the recipient of the 2010 TAFF Environment Award.
Joint Administrator, Tom MacLennan, commented: “Envirotyre had a good profile and client base in a niche that is set to expand further as legislation increasingly requires businesses to dispose of used products, such as tyres, in a responsible manner. The administration represents a good opportunity for an entrepreneur or competitor to acquire the remaining assets of the business”.
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