TAXPAYERS have been hit by the collapse of recycling firm Northwood Environmental after it emerged Swindon Council is owed more than £21,000.

The company, which folded in acrimonious circumstances last month with the loss of 65 jobs and apprenticeships, owes a total of £234,704 to 62 creditors.

Northwood, which had similar operations in Coventry, Huddersfield and Warrington, also owes £49,000 to HM Revenue and Customs. Other creditors include Swindon Scrapstore, a charity based on the Bridgemead Business Centre in Westmead, which is owed £870 for furniture it provided.

The administrators, Chantrey Vellacott DFK, say in a letter to creditors that they “do not anticipate a distribution will be made to any of these creditors”.

A section about the history of the business attributes its collapse to a shortfall of anticipated payments from customers, lost revenue after flooding closed the Coventry site for eight weeks and the costs of commissioning new machinery.

The statement reads: “Problems were initially encountered as a result of flooding on the Coventry site leading to a loss of revenue for approximately eight weeks and costs of £75,000. The company’s commercial income was also diminished at this time as market requirements lead to new equipment being required and product having to be stockpiled until the new machinery was fully commissioned.

“Payment issues began to arise with one of the customers in May 2012 with shortfalls beginning to accrue on the monthly payments being received against invoices issued.

“This culminated in an unpaid debt of approximately £142,000. This, in turn, caused a strain on cash-flow and the director became concerned that insufficient funds would be available to cover September’s payroll.”

The administrators also say that the director, James Jennings, felt that any of these issues on their own would have been manageable but together were insurmountable. As a result the firm was placed into the creditors’ voluntary liquidation undertaken by Chantrey Vellacott.

Northwood, based on the Hawksworth Trading Estate, had been set up to provide opportunities for young people out of work, training or education. Employees were not paid in the week before it closed amid a web of accusations and counter-accusations between Northwood and its Birmingham-based NVQ provider, Skillsfinder UK, which has also gone into administration.

Workers reacted with anger at their treatment, but Mr Jennings, said he had done all he could to save the company and find alternative employment for his staff.