Plastic Recycler CKN Holdings Enters Administration

plastic-recycler-administrationUK plastics recycler CK Group has gone into administration, the second plastic recycler to go into administration in the space of a week.

The company, which operates under the full title of CKN Holdings, operated two further sites in Hull and Melrose, Scotland.

42 employees have since been made redundant as the company said it was hit by factors including tough trading conditions and the slide in oil prices.

“We are seeking offers for the business and assets of the company’s main trading site at Binbrook from several interested parties and will continue to trade whilst a sale is explored.”

Graham Newton and Eddie Kerr from BDO were appointed joint administrators on 13 July and have continued to trade the company at reduced levels.

They concluded a sale of the business and assets relating to the operations in Hull and Melrose to an unknown buyer on 19 July, with 17 employees transferred to the purchasers.

A purchaser is still sought for the Binbrook facility.

BDO business restructuring partner, Graham Newton, said: “Unfortunately, the economic climate and difficult trading conditions, together with the impact of oil prices and a reduction in export demand, particularly from China, significantly affected the business.

“However, we have moved quickly to successfully achieve a sale of part of the business securing continued employment for 17 members of staff.

“We are seeking offers for the business and assets of the company’s main trading site at Binbrook from several interested parties and will continue to trade whilst a sale is explored.”

The news follows the announcement last week that LDPE plastic bag recyclers, PlasRecycle, has also gone into administration.

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