Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed joint administrators to Circularity Scotland Ltd (“CSL” / the “Company”) on Tuesday 20 June 2023.
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 2023.
It was announced in April 2023 that the DRS scheme would be delayed until March 2024, and on 7 June 2023, the Scottish Government announced that the DRS scheme would be delayed further until October 2025 at the earliest.
Following the most recent announcement, it was clear that CSL would be unable to meet various significant contractual obligations, certain of which would become due imminently, without additional funding.
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 to trade immediately upon the appointment of the joint administrators on 20 June 2023.
The joint administrators’ focus will now be on securing and realising CSL’s available assets, for the benefit of its creditors.
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said: “The ongoing uncertainty surrounding the future launch of the Deposit Return Scheme prompted the Company’s backers to withdraw future funding, and as such, the directors were left with few options other than to seek the appointment of administrators.”
Alistair McAlinden, managing director at Interpath Advisory and joint administrator, added: “We are in the process of arranging a meeting with the employees to take place tomorrow morning to explain what the administration means for them.”
