650 jobs at risk as huge UK metals recycling firm files for liquidation

Around 650 jobs are at risk after Unimetals Recycling, one of the UK’s largest metals recycling firms, filed for compulsory liquidation.

The move follows unsuccessful efforts to find a buyer for the struggling business.

Headquartered in Stratford-upon-Avon and operating across 28 sites nationwide, Unimetals Recycling is expected to begin winding down operations imminently, with formal liquidation proceedings anticipated to commence as early as Tuesday.

Advisers from Alvarez & Marsal had been managing discussions with potential purchasers after the firm issued several notices of intention to appoint administrators in recent weeks, but a sale could not be finalised.

The government is understood to be monitoring the situation closely, given the company’s significant role within Britain’s vital steel supply chain.

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”.