Unimetals files for liquidation as 650 jobs now at risk | UK | News

Metal recycling firm Unimetals has filed for compulsory liquidation, putting around 650 jobs at risk. The company, which operates 27 sites across the country, is expected to begin closing from Tuesday after efforts to find a buyer for the business failed.

While advisers at Alvarez & Marsal have been leading discussions with prospective buyers, they have failed to complete a sale following notices of intent to appoint administrators in recent weeks. A spokesperson for Unimetals said: “We have worked tirelessly to explore every possible option to secure new funding for Unimetals Recycling (UK) Ltd to meet our financial obligations and secure the future of the business.

“This involved an expedited M&A process, supported by our advisors and carried out in full collaboration with stakeholders, to identify potential buyers or investors.

“Unfortunately, despite intense interest and attempts to complete the deal, no transaction was finalized.”

The spokesman added: “We recognize how distressing this news will be for everyone associated with Unimetals Recycling (UK) Ltd, particularly our employees who have worked tirelessly since we acquired it from Sims last year to turn this business around.”

The group said it was “working urgently to agree a clear plan and timeline for what happens next.”

Its locations, spread across the UK, work primarily on the collection and processing of copper, aluminum and steel to produce a range of raw materials. Some of its locations include Bristol, Peterborough, Derby, Nottingham and Manchester, and its staff are unsure of their future.

As well as potential job losses, the government has been put on high alert as the firm is a major player in the UK steel supply chain.

Just last year the company completed its massive £195m acquisition of rival Sims Metals, but now Sky News Unimetals reportedly did not make at least one deferred payment in the deal.

This has left the business seeking new funding, with a potential new backer pulling out just weeks ago.