A NUMBER of Barnsley workers are set to be made redundant just weeks before Christmas after one of the UK’s largest metals recycling firms filed for compulsory liquidation.
Unimetals Recycling, which has a base on Boulder Bridge Lane in Carlton, employs around 650 people across the country - including many in Barnsley.
It was announced this week the firm has filed for liquidation following failed month-long efforts to find a buyer.
Unimetals operates 27 sites across the UK, collecting, processing and shredding metallic waste to produce raw materials for copper, aluminium and steel producers both in Britain and abroad.
They completed the £195m purchase of rival Sims Metals last year, but is reported to have failed to make at least one deferred payment as part of the transaction.
The company had lined up new funding to meet its obligations, but the new backer pulled out several weeks ago.
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, supported by our advisers and undertaken in full collaboration with stakeholders, to identify potential buyers or investors.
“Regretfully, despite substantial interest and attempts at completing a deal, no transaction was concluded.”
They added that they are working to realise the next steps and say they will remain in constant contact with their employees.
They said: “We recognise how distressing this news will be for everyone connected to Unimetals Recycling Ltd, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try and turn this business around.
“Their dedication, skill, and resilience are the backbone of this business.
“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.”
