Failed REDcycle recycling scheme leaves tons of soft plastics stored in 44 Sites across Australia, owing over $5 million to creditors

New stockpiles of soft plastics from the failed REDcycle recycling scheme have been uncovered as the search for an alternative continues.

The program was wound up in November 2022 after it emerged plastics consumers had returned to supermarkets to be recycled were instead put into storage.

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The retailers involved say they had no knowledge of what was really happening but have since found stockpiles at 44 sites in six states around Australia.

There are 19 sites in NSW, 15 in Victoria, six in South Australia, two in Tasmania, one in Queensland and one in Western Australia.

The revelation comes as recently released financial records show the company owes more than $5 million to creditors, The Sydney Morning Herald reports.

The private company behind REDcycle has been placed in liquidation.

Documents filed in the liquidation show the company collapsed with more than $5 million in debt, including $411,000 in unpaid taxes and more than $62,000 owed in entitlements to former employees, The Herald reports.

Stockpiles of soft plastics have been found at 44 sites since the REDcycle program was wound up. Credit: AAP

Coles and Woolworths gained control of the stockpiles in late February and have contacted the operators of all 44 sites to make sure the plastic is being stored safely.

The supermarket giants are searching for an alternative recycling scheme but have warned it could be a slow process and are looking into shipping waste overseas to free up limited domestic recycling capacity.

“We’re assessing logistics and warehousing arrangements for each stockpile on a case-by-case basis, as we continue to discuss recycling options with several reputable processors overseas,” the companies said in a statement.

REDcycle previously said it was holding onto the waste while trying to ride out problems including the lack of recycling capacity.

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