More than 650 jobs at risk as scrap metals giant files for liquidation

Over 650 Jobs Hang in the Balance as Scrap Metals Giant Unimetals Files for Liquidation

A significant number of jobs are under threat after Unimetals Recycling (UK), a leading scrap metals group, filed for compulsory liquidation. The move comes as the company's owners failed to secure a buyer for the business, putting thousands of employees at risk.

Unimetals, founded in 2023 by metals traders Jamie Afnaim and Alec Sellem, aimed to acquire metal recycling and processing businesses with a focus on critical minerals essential for the transition away from fossil fuels. However, despite agreeing to purchase UK sites from Australian company Sims for £195m, the business struggled due to high supply of excess scrap and steel, leading to declining prices.

The company had faced financial difficulties earlier this year, and its owner allowed it to delay a final payment, but Unimetals was unable to secure the funds needed. In recent weeks, Unimetals filed three notices of intention to appoint administrators before filing for liquidation.

A spokesperson for the company stated that they "worked tirelessly" to find new financing options to meet their financial obligations and safeguard the business's future. Despite substantial interest from potential buyers or investors, no transaction was concluded.

The news has been described as distressing by employees, who are now facing an uncertain future. The group announced it is working urgently with Alvarez & Marsal, a professional services firm, to agree on a clear plan and timeline for the company's next steps.

With over 650 jobs at risk, Unimetals' liquidation highlights the challenges faced by businesses operating in the scrap metals industry, which generates billions of pounds of revenue each year by recycling metals like steel, aluminum, and copper. The shift towards electric arc furnaces that melt down recycled steel has provided hope for the sector's longer-term prospects.

Ugh, 650 jobs are on the line ? Can you believe it? Unimetals just couldn't make ends meet ... I mean, who does? But seriously, what's going on with these metal recycling companies? They're like, super important for our environment and all that . I remember back in my day, we didn't have all this fancy technology to recycle metals, but people still managed to make it work . Now, it's just a numbers game... who's gonna buy 'em? It's like, what happened to the old days when you could just rely on a local scrapyard and someone would come along and buy your junk from you? Those were the days...

omg 650 jobs on the line is crazy! i feel bad for all those ppl who are gonna be affected unimetals had some promising plans to help with critical minerals, but it looks like things didn't work out i hope they can find a way to save as many jobs as possible and get the business back on track maybe this is just a bump in the road for the scrap metals industry?

I'm so sorry to hear about this ...650 jobs are literally on the line here. It just feels like there's no way out, you know? One minute you're working hard and feeling good about your job, the next thing you know, everything's being taken away from you . Unimetals tried its best to make it work, but sometimes things just don't go as planned . My heart goes out to all those people who are going through this right now – you guys deserve so much better .

Job insecurity is no joke 650 people's future are being put on hold just because a company couldn't make ends meet

this is so harsh on the ppl who actually do the work at Unimetals, all those jobs just gone in an instant, no warning or anything... what about the families and communities that rely on them? it's like they were just disposable, not even worth trying to save... 650 jobs is a lot, can't we do something to help these people out?

.. this is super sad news . I mean, Unimetals had some big plans to help with our transition to greener energy, and now it looks like all those jobs are in jeopardy . It just goes to show how fragile even the biggest companies can be when things don't go their way. But, I guess there's still hope - maybe this will spur on more innovation and recycling efforts?

omg 650 jobs are on the line its so sad i just got my tax return and was feeling good about saving money now im worried about these people who lost their jobs i wonder if they can get help from unemployment or something did u know that u can buy metal recycling at tesco supermarkets or supermarket chains in uk?

[Image of a sad metal robot with its head hung low ]

650 jobs at risk is a really tough number to deal with... can't imagine how worried those workers must be right now . I'm no economist, but it seems like Unimetals' struggles were largely due to market fluctuations and oversupply of scrap metals . Still, the impact on employees can't be understated – all that uncertainty and fear is not good for their well-being .

I think it's interesting that this liquidation highlights the importance of the shift towards recycling and more sustainable practices . Electric arc furnaces, in particular, offer a promising solution to reduce waste and reliance on fossil fuels . Perhaps this can be an opportunity for some growth and innovation in the industry? Only time will tell how Unimetals' liquidation plays out

omg this is so bad I feel for all those people who are losing their jobs 650 is a lot! Unimetals seems like they just weren't lucky enough to get their act together, you know? The whole business strategy thing just didn't pay off sadly. It's like, you start something up with all this enthusiasm and then it falters because of external factors. I guess we'll just have to wait and see what happens next... hopefully some good comes out of it

I don’t usually comment but I just saw this news about Unimetals and I feel kinda bad for all those people who lost their jobs . I mean, I know businesses can be super unpredictable and stuff but it’s always tough when a lot of people are affected . The company tried really hard to find new investors or buyers, but things just didn’t work out . It’s like when you really want something to happen, but sometimes life has other plans . Anyway, I hope the employees get some support and they can find new opportunities soon !

ugh this is so sad my heart goes out to all those people who are gonna lose their jobs i mean, scrap metals recycling is such an important industry, right? they're helping us transition away from fossil fuels and all that... but it's just not fair when these big companies can't even keep the lights on what's next? more closures? more layoffs? anyway, gotta wonder if this is a sign of bigger things to come for our economy or if it's just a one-off

I'm seeing a lot of people worried about Unimetals' closure... 650 jobs are on the line ! I've been following their journey, and it's super sad to see how they struggled with supply & demand in the scrap metals market . They were trying to create a more sustainable future for us by recycling critical minerals, but it just didn't work out .

Let me try to visualize this situation:

Scrap Metals Market
|
| +-----> (Supply)
| | |
| | | Excess Scrap & Steel (High Prices)
| | |
| v
| +-----> (Demand)
| |
| | Unimetals' Business Model ( Didn't Thrive )
| |
| v
| +-----> (Liquidation)

It's clear that the market had other plans . But hey, at least we can learn from this and support each other !

omg this is super worrying 650 jobs at risk is just too many! Unimetals was trying to do something good by investing in critical minerals, but it seems like the market wasn't cooperating . I'm so sorry for all those employees who are facing uncertainty . Can't they think of a way to save these jobs? maybe there's still hope?

just had to share this one ... 650+ jobs are on the line because of Unimetals' financial struggles ... it's hard not to think about the people who'll be affected - families, loved ones, colleagues... all of them will be worried and unsure what's next . can't help but wonder if we're prepared for this kind of thing to happen in our industry? shouldn't be so easy to find buyers or investors, especially when there are so many metal recycling businesses struggling . hope the Alvarez & Marsal team can work some magic and get Unimetals back on track . wish them all the luck

Just heard about Unimetals filing for liquidation 650+ jobs are on the line... what a huge blow to the economy & those workers who lost their source of income . Scrap metals industry is already struggling with declining prices, but this is like, next level . I feel bad for Jamie Afnaim & Alec Sellem, they must be gutted . Can't help but think there's gotta be something we can do to support these workers... maybe some kind of transition plan or training program?

OMG u won't believe what just happened to Unimetals Recycling They filed for liquidation and now over 650 jobs are at risk ! I feel so bad for all those employees who are going through this tough time . I mean, the company tried their best to find new financing options but it just wasn't meant to be .

I think it's kinda crazy that they invested so much into acquiring metal recycling and processing businesses, only to struggle with excess scrap and steel prices . It's like, you gotta be prepared for those kinds of market fluctuations, right?

Anywayz, I hope the employees get some support and a clear plan in place ASAP . It's just another example of how unpredictable business can be . Let's all keep our fingers crossed that Unimetals' demise won't have a ripple effect on the entire scrap metals industry

Oh my goodness, this is so sad!!! I can only imagine how scary it must be for all those employees who are now facing an uncertain future. My heart goes out to them . The fact that Unimetals worked tirelessly to find new financing options shows that they genuinely tried to save the business, but sometimes things just don't work out . I hope the administrators can come up with a clear plan and timeline soon so everyone knows what's next . Fingers crossed for those jobs !