Production has finally ceased at Plasrecycle, the South London-based plastic film recycler which went into administration last month.
Following the firm's collapse due to cashflow problems it was being run by joint administrators Ernst & Young (E&Y) while possible buyers were being sought.
Twenty of Plasrecycle's staff were made redundant when it went into administration, leaving 16 to oversee the completion of existing work.
This number has now been reduced to just two employees, according to E&Y, who have been kept on to maintain the plant.
At the time of Plasrecycle's collapse E&Y said the company would “continue to convert existing work in progress into finished product, but not convert new raw material due to the level of losses in processing”.
However in a new statement the firm revealed this was no longer viable.
“We have had to cease production as it would have incurred significant losses to have continued beyond working through the existing work in progress.
“As a result we have reduced the workforce to two people who are maintaining the facility whilst we continue discussions with a number of interested parties,” it added.
E&Y did not give details of who it is talking to regarding a possible sale of the business.
The Woolwich-based Plasrecycle, which became operational in 2013, claimed to be the UK's first dedicated plant for recycling post-consumer shopping bags and films collected at the kerbside from households.
As a start-up it had investment of around £12m from private, and at the time public sector sources, notably Wrap, which is now a charity.