One of Britain's largest metal recycling companies has collapsed, placing around 650 jobs in immediate jeopardy after last-ditch efforts to rescue the struggling business failed.
Winding Down Begins for Recycling Giant
Unimetals Recycling, headquartered in Stratford-upon-Avon, has filed for compulsory liquidation and is expected to begin winding down operations imminently. The company, which operates 28 sites across the nation, could enter liquidation proceedings as early as Tuesday.
This drastic move follows several notices of intention to appoint administrators that the business filed in recent weeks. Advisers from Alvarez & Marsal were brought in to manage discussions with potential buyers, but despite their efforts, they were unable to secure a sale for the stricken firm.
'Substantial Interest' Fails to Secure Rescue Deal
A spokesperson for Unimetals confirmed the devastating news, stating: "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."
The spokesperson added, "Regretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded."
Recognising the human impact, they continued: "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."
Government Monitoring Critical Supply Chain Impact
The group confirmed it is now "working urgently to agree on a clear plan and timeline for what happens next." It is understood that the government is watching the firm's collapse closely, given its significant role within Britain's steel supply chain.
Unimetals specialises in collecting, processing, and shredding metal waste to produce raw materials that are sold to copper, aluminium, and steel producers both in the UK and worldwide.
The company's financial troubles escalated following its £195 million takeover of rival Sims Metals in 2024. The group found itself unable to make a deferred payment to Sims as part of that acquisition deal. Although Unimetals had been actively seeking new funding to address this shortfall, the withdrawal of the group's key investor ultimately sealed its fate.
