Updated: 16th June 2016
A recycling company trading as New Earth Solutions has been rescued out of administration, with a total of 143 jobs understood to have been made safe in the process.
New Earth Solutions is based just north of Bournemouth on the South Coast of England and provides recycling services in relation to black bin collections carried out across much of Dorset.
Having fallen into a difficult financial position in recent weeks, the business was entered into administration on June 7th, with an acquisition deal arranged with a new buyer just two days later.
The buyer is a company called DM Opco, which is operated by Declan McKelvey, a specialist in leading financial restructuring and business recovery efforts.
“I look forward to working with the management team and all employees in order to re-establish the business and deliver strong future growth,” a spokesperson for DM Opco said in a recent statement.
“New ownership has enabled the group to strengthen its balance sheet and it is now fully funded,” they added.
A spokesperson for New Earth Solutions confirmed that the deal that sees the company bought out of administration will safeguard 143 jobs across five operating bases, including at its head office in Verwood.
“The business, assets and subsidiaries of the companies, which were purchased by DM Opco Ltd, will continue to trade as New Earth,” they are quoted as saying in the Bournemouth Echo.
New Earth’s business is based around the provision of services referred to as being ‘second chance recycling’, which is designed to retrieve recyclable material from discarded household waste.
Larry Austin from the Bournemouth council has confirmed that local authorities will continue to work with the company under the terms of an existing contract, which sees it manage close to 45,000 tonnes of waste on an annual basis.
Dorset Waste Partnership, another important client of New Earth Solutions, released a statement saying it has been kept informed of the company’s recent restructuring effort and said it will continue working closely with management.
“We will carry on monitoring the situation and ensure that our residual waste continues to be processed smoothly and efficiently,” it said.
Real Business Rescue provide director advice online, over the phone, or in-person at one of our 100 UK offices or a place of your convenience.