Major metals recycling company Unimetals has collapsed into compulsory liquidation, placing approximately 650 jobs in jeopardy across its nationwide operations.
Winding Down Begins After Failed Rescue Bid
The firm, which operates 27 sites across the UK including facilities in Halesowen and Smethwick, is expected to begin winding down operations as soon as Tuesday. This follows unsuccessful attempts to find a buyer for the struggling business.
Advisers from Alvarez & Marsal managed discussions with potential purchasers but were ultimately unable to secure a sale that would have rescued the company.
"Distressing News" for Employees and Stakeholders
A spokesperson for Unimetals expressed regret at the outcome, stating: "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."
The company had undertaken an accelerated merger and acquisition process, supported by 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 confirmed.
The spokesperson acknowledged the impact on staff, saying: "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."
What Happens Next for Unimetals?
The group confirmed it is now "working urgently to agree on a clear plan and timeline for what happens next" as the liquidation process begins.
The collapse represents a significant blow to the UK's metals recycling sector and the local economies where Unimetals operated, particularly in the West Midlands where the Halesowen and Smethwick sites are located.
