Metals recycling firm Unimetals has filed for compulsory liquidation, putting around 650 jobs at risk. The company, which operates 27 sites nationwide, is expected to begin winding down as soon as Tuesday after efforts to find a buyer for the business failed.
It follows several notices of intention to appoint administrators in recent weeks, with advisers from Alvarez & Marsal managing discussions with possible buyers, but they were unable to secure a sale. A spokesperson for Unimetals said: “We have worked tirelessly to explore every possible option to secure new financing for Unimetals Recycling (UK) Ltd, with the aim of meeting our financial obligations and safeguarding the future of the business.
“This included an accelerated M&A process, supported by our advisers and undertaken in full collaboration with stakeholders, to identify potential buyers or investors.
“Regretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded.”
The spokesperson added: “We recognise how distressing this news will be for everyone connected to Unimetals Recycling (UK) Ltd, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try and turn this business around.”
The group said it was “working urgently to agree on a clear plan and timeline for what happens next”.
Its locations scattered across the UK mainly work on the collection and processing of copper, aluminium, and steel to produce a set of raw materials some of it’s locations include Bristol, Peterborough, Derby, Nottingham and Manchester, with it’s workers uncertain of their future.
Along with the potential job losses, the government has been placed on high alert as the firm is an important player in the supply chain of UK steel.
Just last year, the business completed the huge £195m takeover of rival Sims Metals, but now Sky News is reporting that Unimetals failed to make at least one deferred payment on the deal.
This caused the business to search for new funding, with a potential new backer pulling out just weeks ago.
