Kidderminster firm Lawrence Recycling will continue operating collections despite entering into administration.
The company was forced to seek the assistance of administrators after two recent fires at its facilities decimated the business.
Two fires in seven months caused the administration and led to 24 employees being made redundant.
It will continue to offer collections to commercial customers, but a licensed third party site will be used for storing and processing materials.
The company will continue to be called Lawrence Recycling, but will operate as a new firm with 2013 in its official title, with original business Lawrence Recycling and Waste Management closed down.
It has also put up for sale The Forge recycling facility in Kidderminster.
Chairman Andrew Gibson told The Shuttle newspaper: “It’s extremely sad. We’re a team of people who have worked very hard since we opened The Forge in 2009 – we’ve tried to recycle and meet Government targets.
“A lot of people lost their jobs and they all live in the area. It was incredibly difficult to make the decision. It’s important that part of the business is able to continue and make sure the waste is still being collected.
“The plan for the future is to look after the customers on the commercial side and protect the employees that we’ve been able to keep on.”
KPMG has handled the administration of the company.