More than 650 employees face potential redundancy after Unimetals Recycling (UK), a major scrap metals group operating at 27 locations across the UK, filed for compulsory liquidation. The company's owners submitted a winding-up petition on Monday after failing to secure a buyer.
Unimetals was established in 2023 by metals traders Jamie Afnaim and Alec Sellem. The pair agreed to purchase the UK sites from Australian firm Sims in October 2024 for £195m, but were unable to turn the business around. The acquisition included four metal shredders and three port facilities, with headquarters in Stratford-upon-Avon.
The company encountered difficulties earlier this year as an oversupply of scrap metal and steel outstripped demand, putting pressure on prices. Sims granted a delay on a final payment, but Unimetals could not raise the necessary funds. Under Sims's ownership, the business had recorded a £22m loss in the year to June 2023. In recent weeks, Unimetals filed three notices of intention to appoint administrators before the winding-up petition.
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... Regretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded."
The spokesperson acknowledged the distressing time for employees and said the group was "working urgently to agree on a clear plan and timeline for what happens next". Professional services firm Alvarez & Marsal has been managing talks about the company's future. Unimetals also operates a hydrometallurgical facility in Kezad, near the port of Abu Dhabi.
