A major British metals recycling enterprise stands on the precipice of collapse, with liquidation proceedings potentially commencing as early as tomorrow.
Unimetals Group, which maintains a workforce of 650 across 27 facilities throughout the nation, could face imminent closure mere weeks before the festive season.
The impending liquidation threatens to leave the majority, if not the entirety, of the company's employees without work.
In response, the firm has already submitted multiple notices signalling its intention to bring in administrators in recent weeks.
The enterprise plays a significant role in Britain's metals recycling sector, handling the collection, processing and shredding of metallic waste materials.
Professional services firm Alvarez & Marsal has spent the past month orchestrating discussions about the company's future, yet these efforts have yielded no viable rescue deal.
Industry insiders confirm that numerous prominent steel and metals corporations were contacted to assess their interest in acquiring the struggling business.
Despite these extensive negotiations, no purchaser has emerged to save the recycling giant from its financial predicament.
A major British metals recycling enterprise stands on the precipice of collapse, with liquidation proceedings potentially commencing as early as tomorrow
|GETTY
The unsuccessful search for a buyer represents the latest setback for a company that has struggled to stabilise its operations following last year's major acquisition.
Financial troubles at the firm originate from its £195million takeover of competitor Sims Metals last year.
According to reports, Unimetals has been unable to honour at least one instalment of the deferred payments agreed as part of that transaction.
Following this development, the recycling firm had arranged alternative financing to fulfil these commitments, but this prospective financial backer withdrew from the arrangement several weeks ago.
LATEST DEVELOPMENTS
Many have laid blame at Rachel Reeves for damaging businesses
| GETTYThis withdrawal left Unimetals without the necessary funds to meet its obligations from the acquisition.
Reports claim the inability to secure replacement funding has accelerated the company's descent towards liquidation, despite its substantial presence in Britain's metals recycling industry.
The Government is understood to be vigilant regarding the unfolding crisis, given Unimetals' integral position within Britain's steel supply infrastructure.
Unimetals transforms scrap metal into essential raw materials for copper, aluminium and steel manufacturers operating both domestically and overseas.
The potential closure would disrupt supply chains
| GB NewsThe recycling giant's network spans the entire country, serving as a critical link between waste collection and manufacturing sectors.
The potential closure would disrupt established supply chains that British steel producers rely upon for their operations.
The company has lodged a third notice of intention (NOI) to appoint administrators, securing another statutory moratorium of 10 business days.
They said that the latest filing is designed to give the business time to finalise documentation with its investor.
During the moratorium, suppliers, service providers and customers are being asked to allow the process to conclude in an orderly fashion.
Creditors are barred from taking enforcement action, collecting debts, or removing goods and materials until the period expires.
The company has pledged to issue a further update once the process is complete, or at the end of the third NOI period.