A West Midlands scrap metal recycling company and its transport division have been sold in a pre-packaged administration deal that saves 39 jobs.
Enablelink and its freight transport subsidiary MT Transport (UK) appointed administrators at FRP Advisory just days before Christmas, following what it said were very significant challenges presented by lower prices and volumes for recyclable metals, amid depressed industrial demand globally and locally.
FRP added that its appointment reflected both companies’ rapidly deteriorating financial performance in recent months.
MT Transport holds an operator licence in the name of Enablelink authorising the use of 16 HGVs and 10 trailers running out of three depots in Coseley, Tipton and Cradley Heath.
The administrator said Enablelink, which processes more than 300,000 tonnes of materials each year, had suffered the effects of global economic conditions and trade issues on scrap metal volumes and prices.
On appointment, a pre-pack transaction was agreed with national business Global Ardour Recycling and it has acquired Enablelink’s processing sites in Great Bridge and Coseley, securing 39 jobs in total.
FRP confirmed to Motor Transport that the sale included the business and the majority of the assets of MT Transport as well.
Raj Mittal, joint administrator and partner at FRP, said: “Enablelink is a well-established operator with a strong reputation in the metal recycling sector, but like many businesses in this industry it has faced complex headwinds.
“Global economic pressures, shifting trade conditions and rising costs have all had a significant impact on trading performance.
“We’re pleased to have been able to secure a sale that preserves continuity at two key sites and safeguards jobs.”
He added: “Our focus now is on engaging with stakeholders and working to achieve the best outcome for the remaining parts of the business.”
