A BOLTON recycling firm which went out of business and left the council with a £2 million clean-up bill is the subject of a criminal investigation.

S C Chadwick and Sons Ltd operated from a base in Oakenbottom Road in Breightmet and had another site in Leigh, before it ceased trading earlier this year.

Since the closure of the Breightmet site, Bolton Council has begun work to clear an estimated 20,000 tonnes of waste, a scheme expected to cost up to £2m.

It transpires that the company is under criminal investigation by the Environment Agency, which is looking at activities on both sites prior to its being wound up.

A spokesman for the agency said: “We take tough action against poor performing companies and those who commit waste crime. A criminal investigation is currently ongoing into activities on both the sites operated by SC Chadwick and Sons Ltd.”

The spokesman confirmed that the council has taken charge of the site and the clear-up job, adding: “Bolton Council acted quickly and decisively once the company liquidated to acquire the former Chadwicks site at Oakenbottom Road, Bolton. In doing so they committed, as the landowner, to clear the former waste site.”

In February, it was reported that about 30 jobs had gone at the Bolton site after Chadwicks was served with a suspension notice by the Environment Agency.

The notice prevented the firm from bringing any more waste on to its premises because it had reached its limit.

According to Companies House, the firm was liquidated on March 30 after more than 50 years in business. Local residents campaigned for the council to clean up the huge amount of waste left rotting on the land.

That process has now begun and council chiefs expect to have completed the job by October — but it will cost an estimated £2 million, which the authority is funding using its reserves.

Environment boss, Cllr Nick Peel said he is pleased to hear that those behind the failed Chadwicks firm are being investigated.

He said: “I am pleased that the Environment Agency is doing this as it is within their remit as an organisation.

“While I don’t know the details of the case but I would hope that it’s not just the company but the individual directors who are being investigated for what has taken place – this needs to send a message out to other companies.”

Cllr Peel said work was proceeding well with the clearance of the site, but again criticised the huge costs the council is having to pay in government landfill taxes.

He added: “This job will cost us more than £2 million and about £1.7 million of that is just landfill tax.

“If you think about it that kind of cost is just going to stop councils from doing things like this, but we have decided to use our reserves to pay for this to improve the lives of residents living near to this site.”

No one from Chadwicks was available for comment.