Hundreds of staff at scrap metal recycling company Unimetals are facing up to the prospect of redundancy after it filed a petition to enter compulsory liquidation.
The Stratford-upon-Avon headquartered company holds operator licences in almost all traffic areas and is authorised to run between five and 44 HGVs out of each of its bases.
It had attempted to find a buyer for the firm after struggling financially but after filing three notices of intention to appoint administrators in recent weeks, it finally lodged a winding-up petition in court on Monday (24 November).
The Official Receiver confirmed it would now wind down the business in accordance with its statutory duties, which included looking into the cause of its failure and the conduct of current and former directors.
The last available set of accounts for Unimetals Recycling (UK) showed that it employed a total of 750 staff in 2023, spread across production, selling and administration, and management.
It had made a £21.8m pre-tax loss in the year ending 30 June 2023, compared to a £25.4m profit in 2022.
A spokesman for Unimetals said: “We have worked tirelessly to explore every possible option to secure new financing for Unimetals Recycling (UK), with the aim of meeting our financial obligations and safeguarding the future of the business.
“This included an accelerated M&A 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.
“As a result, we have filed a petition for the compulsory liquidation of Unimetals Recycling (UK).”
The spokesman recognised the news would be distressing for everyone connected to Unimetals, “particularly our employees who have worked tirelessly over the last year since we acquired it from Sims Metal to try and turn this business around,” he said.
“Their dedication, skill, and resilience are the backbone of this business.
“Our priority now is to work closely with all stakeholders including employees, suppliers, customers, creditors, and our regulators to ensure that the liquidation process is managed safely, responsibly, and transparently.
“We are working urgently to agree on a clear plan and timeline for what happens next,” he added.
