The company has faced escalating liquidity challenges throughout 2025, prompting a search for new financing.
Earlier this year, Unimetals launched an accelerated mergers and acquisitions process in an attempt to bring in a buyer or majority investor.
A Unimetals spokesperson said: “Regretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded.
“As a result, we have today filed a petition for the compulsory liquidation of Unimetals Recycling.”
The spokesperson acknowledged the impact on staff and stakeholders, praising employees who had “worked tirelessly over the last year since we acquired it from Sims to try and turn this business around”.
Unimetals employs around 650 people across 27 sites nationwide, including facilities in Bristol, Peterborough, Hartlepool, Derby, Exeter, Plymouth, Manchester, Newport and Nottingham.
Stalled investor negotiations
The liquidation petition follows a sequence of three notices of intention (NOI) to appoint administrators lodged earlier this year.
The third NOI was understood to be a final attempt to secure time for finishing documentation with a potential investor.
Throughout the autumn, Unimetals signalled that it was exploring refinancing options, stating in October that it had entered a “formal process” to work with stakeholders in pursuit of new investment.
The spokesperson explained: “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.”
Despite these efforts, negotiations appear to have stalled, leaving the company without the funding required to continue operations.
Looking forward, the spokesperson added: “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.”
£195m Sims UK acquisition
Unimetals purchased all 28 of Sims Metal Management’s UK sites, including four metal shredders and three port facilities, for £195 million in October 2024.
The deal was expected to create one of the UK’s largest independent scrap metal recyclers.
The transaction’s uncertainty prompted Sims to take a £17 million loss allowance, according to its annual report published in September 2025.
In response to the development, Sims confirmed that it has “had no involvement in the operations of the business” since the sale of its UK operations to Unimetals in October 2024.
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