Stricken giant collapses as 650 jobs put at risk
One of the UK’s largest metals recycling firms has collapsed after efforts to find a buyer for the stricken business failed – with around 650 jobs now at risk.
Stratford-upon-Avon-headquartered Unimetals Recycling has filed for compulsory liquidation is now is expected to begin winding down imminently.
The company, which operates 28 sites nationwide, is set to undergo liquidation proceedings as early as Tuesday.
The move comes after several notices of intention to appoint administrators were filed by the business in recent weeks.
Advisers from Alvarez & Marsal have been appointed to manage discussions with possible buyers, but they were unable to secure a sale.
No deal reached despite ‘substantial interest’
A spokesperson for Unimetals said: “We have worked tirelessly to explore every possible option to secure new financing for Unimetals Recycling, with the aim of meeting our financial obligations and safeguarding the future of the business.
“This included an accelerated mergers and acquisitions 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, 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”.
It is understood the government is watching the firm’s collapse closely, given its role in Britain’s steel supply chain.
Unimetals collects, processes and shreds metal waste to produce raw materials to sell to copper, aluminium and steel producers in the UK and worldwide.
Its financial woes follow the £195m takeover of rival Sims Metals in 2024, with the group unable to make a deferred payment because of Sims as part of the deal.
Unimetals had been looking to secure new funding to address this, but the group’s key investor pulled out.