Halifax-based Iplas has gone into administration. The plastic recycler, which manufacturers a range of products for the construction industry, is now in the hands of administrator Grant Thornton despite reporting a 50% increase in sales in the 12 months to May.
Joe McLean, a restructuring partner at Grant Thornton in Leeds, said that a combination of “oversupply” and “wafer thin margins” had combined to kill off the business. In some instances orders were fulfilled at a loss, he added.
“There was only a small number of orders when I was contacted by the firm,” he said. As a result 45 of the 50 staff have been made redundant and there is a “limited prospect of a sale of Iplas as a going concern”.
Back at the start of the summer chief executive Grahame Hall explained that Iplas was experiencing solid growth as the result of a major investment in machinery and tooling funded by a £2.5m cash injection from green venture capital investor Foresight Group.
Commenting at the time Hall said: “The last year has been very successful for the group and we are confident about the future.”