UK Scrap Metals Giant Files for Liquidation, Threatening Hundreds of Jobs
Over 650 workers at Unimetals Recycling (UK) face the very real prospect of redundancy as the company has filed a winding-up petition for compulsory liquidation. The move comes after the business failed to secure a buyer despite efforts by its owners to find a solution.
Unimetals was founded in 2023 with the ambitious aim of buying up metals recycling and processing businesses, particularly those focused on critical minerals and necessary for the transition away from fossil fuels. The company's founders, Jamie Afnaim and Alec Sellem, had initially purchased UK sites from Australian metal company Sims for £195m, including four metal shredders and three port facilities.
However, despite initial optimism, Unimetals struggled in recent months as a surge in excess scrap and steel led to price drops, crippling the business. Under Sims' ownership, the company had posted significant losses, with a £22m deficit recorded in the year leading up to June 2023.
Following a series of notices of intention to appoint administrators, Unimetals filed for liquidation, citing an "accelerated mergers and acquisitions process" as its primary reason. However, despite substantial interest from potential buyers, no deal was secured.
The company's spokesperson acknowledged that the move would be a distressing time for employees, stating that they were "working urgently to agree on a clear plan and timeline for what happens next." Alvarez & Marsal, a professional services firm, has been managing talks about the company's future.
Over 650 workers at Unimetals Recycling (UK) face the very real prospect of redundancy as the company has filed a winding-up petition for compulsory liquidation. The move comes after the business failed to secure a buyer despite efforts by its owners to find a solution.
Unimetals was founded in 2023 with the ambitious aim of buying up metals recycling and processing businesses, particularly those focused on critical minerals and necessary for the transition away from fossil fuels. The company's founders, Jamie Afnaim and Alec Sellem, had initially purchased UK sites from Australian metal company Sims for £195m, including four metal shredders and three port facilities.
However, despite initial optimism, Unimetals struggled in recent months as a surge in excess scrap and steel led to price drops, crippling the business. Under Sims' ownership, the company had posted significant losses, with a £22m deficit recorded in the year leading up to June 2023.
Following a series of notices of intention to appoint administrators, Unimetals filed for liquidation, citing an "accelerated mergers and acquisitions process" as its primary reason. However, despite substantial interest from potential buyers, no deal was secured.
The company's spokesperson acknowledged that the move would be a distressing time for employees, stating that they were "working urgently to agree on a clear plan and timeline for what happens next." Alvarez & Marsal, a professional services firm, has been managing talks about the company's future.
Oh noooo! This is so sad 
Unimetals was supposed to be this amazing game-changer in recycling 
but it just didn't work out sadly 
Hundreds of people are going to lose their jobs 
and that's just devastating 
I hope the workers can find new opportunities soon 
and the company can learn from its mistakes 
. And now it's like, goodbye to all that progress towards renewable energy 
So this is how it ends, right? Unimetals, this ambitious recycling startup, just gets shut down after trying to make a difference in the transition away from fossil fuels... and what does that tell us? That big businesses can't always be trusted to prioritize sustainability 
. I mean, all those years of posting losses under Sims' ownership, what were they thinking? 
Did we really think it was going to magically fix itself?
The owners might not have had any intention to harm anyone, but the system just fails them. Where are our government's support mechanisms for these workers? That's where things get really interesting...
. I mean, I knew they were having trouble, but 650 workers? That's a lot of people who are going to be affected by this 
. They should've done more research on the market before starting up, it's not like buying up metal shredders and port facilities out of thin air was gonna be easy 
. I hope Alvarez & Marsal can do some magic to find a buyer or something, but I'm not holding my breath 
. This whole thing just feels like a mess and it's not like anyone was really prepared for what could go wrong 
. I hope the administrators can figure out something to keep as many people employed as possible. Maybe Alvarez & Marsal knows some secret deal 
that's just devastating for all the families involved 
what's going on?!
. But for real though, thousands of jobs are at risk, that's not something to joke about. Still, kinda weird that they didn't think this through before getting all ambitious with their metal recycling plans 
hope the gov can step in or help find buyers ASAP 
. I feel bad for Jamie and Alec, they took a huge risk with their vision 
. Hopefully, Alvarez & Marsal can help find a solution soon 
... these workers deserve better 
.
and now it's all falling apart 
Hundreds of people are going to lose their jobs and I feel like we're not doing enough to support our workers. the government should be doing something about this, but they're always so slow 
I mean what's the point of having a green agenda if we can't even protect our own people?