UK metals recycler Unimetals today filed a petition for compulsory liquidation, putting operations and hundreds of jobs at one of the UK's largest recycling companies at risk.
Unimetals filed the petition after failing to secure financing to salvage the business. It is unclear when liquidation proceedings will begin.
The company filed three notices of intention to appoint administrators (NOI) over the past six weeks to buy time as it tried to strike a deal with interested parties.
"We have worked tirelessly to explore every possible option to secure new financing for [the company], with the aim of meeting our financial obligations and safeguarding the future of the business," a Unimetals spokesperson said.
Options explored included an accelerated mergers and acquisitions process, but the spokesperson said no transaction was made, despite substantial interest and attempts to make a deal.
Unimetals said it recognises how distressing this is for everyone connected to the business, particularly its employees, adding its priority is to work with stakeholders to ensure the liquidation process is managed properly and with transparency.
"We are working urgently to agree on a clear plan and timeline for what happens next," the spokesperson said.
Unimetals first filed an NOI on 13 October after a key investor pulled out of a funding round — the company then faced financial problems in completing the purchase of Australian-headquartered Sims Metals' UK business.
