Administrators called in at Deposit Return Scheme operators

THE organisation set up to implement a scheme to encourage the recycling of bottles and cans in Scotland – and a likely subsequent reduction in litter – has gone into administration.

Begins a media announcement (here) on behalf of the not-for-the-profit Circularity Scotland: “Blair Nimmo and Alistair McAlinden from Interpath Advisory were [yesterday] appointed joint administrators to Circularity Scotland Ltd.”

The announcement adds: “CSL, a not-for-profit company, was established by a number of drinks companies in 2020 to help implement Scotland’s Deposit Return Scheme (DRS). In 2021, CSL was appointed as the administrator, and subsequently secured key contracts with third parties to help set up the required operational and IT infrastructure.

“Approximately 40 staff members were employed by CSL as it, and the drinks industry as a whole, geared up for the anticipated launch of Scotland’s DRS scheme in August [this year].”

However: “It was announced in April 2023 that the DRS scheme would be delayed until March 2024, and on June 7, the Scottish Government announced [here] that the DRS scheme would be delayed further until October 2025 at the earliest.”

And the announcement also says: “While CSL was in active discussions with key stakeholders to secure additional funding, these negotiations unfortunately proved unsuccessful and so, after exhausting all other potential options, the company’s directors took the difficult decision to file for the appointment of administrators.”

CSL ceased trading yesterday with subsequent reporting in the media raising fears for the welfare of CSL’s employees.

Picture credit: Place Design Scotland

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