Skip hire and waste management company Alex Smiles Ltd has entered into administration after failing to pay creditors following the suspension of its environmental permit.

The Sunderland-based business, which specialises in skip hire collection, waste separation and hardcore recycling, entered into administration earlier this month after facing financial difficulties.

The company had reportedly struggled to pay back creditors after the Environment Agency (EA) served the company with legal notices requiring it to reduce the amount of waste stored on site. Three notices were served to the company in February, after the EA discovered that the firm was storing more waste at its Deptford site than it was permitted to – and was therefore breaching laws relating to safe waste management. One of the notices required the firm to reorganise waste piles that were said to pose a fire hazard at the site.

As such, the company had its environmental permit suspended, preventing it from operating.

Due to the loss of income, the company called in administrators Steven Ross and Allan Kelly, both of Baker Tilly Restructuring and Recovery, on 18 May.

Alex Smiles has now stopped trading and has made around 50 staff redundant. However, a small number of employees have been retained to assist in the winding up of the company.

Resource contacted Alex Smiles for a statement, but was told that the company would not comment at this time. However, Baker Tilly said it was currently working to sell off the firm’s assets in order to pay creditors.

The closure of Alex Smiles Ltd came just a week after its sister company, Waste Recycling Logistics Ltd, fell into administration, resulting in all 32 staff being made redundant.

Despite the closure of the two firms, the EA has said that responsibility for clearing the two sites still lies with the owners, John and Stuart Smiles.

Find out more about environmental permits.