Unimetals, which is headquartered in Stratford-upon-Avon confirmed that the filing comes after a key investor withdrew from a near-complete funding round.
The move leaves uncertainty over the company’s £195 million deal to acquire Sims Metals UK, which was announced in August 2024.
A spokesperson from Unimetals said: “In recent months we have been working to refinance and recapitalise Unimetals Recycling to create additional liquidity and address the deferred consideration due to Sims.
“It was recently confirmed to us that our main new investor would not participate in this funding round, despite the transaction being in near final form.”
£35 million owed by Unimetals
Unimetals agreed last year to buy all 28 of Sims Metal Management’s UK sites – including four metal shredders and three port facilities – for £195 million.
The deal was expected to create one of the UK’s largest independent scrap metal groups.
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.
In a statement, the company said it had completed its obligations under a non-ferrous off-take agreement in July 2025, which was part of the transition arrangements following the sale.
Sims added that it retains a £35 million receivable owed by Unimetals, which remains on its balance sheet and is “partially secured” by a debenture.
Company ‘exploring options’ to secure finances
Unimetals confirmed that it is exploring refinancing options.
The Unimetals spokesperson said: “The company is now focused on a formal process and in exploring options with stakeholders as part of its wider refinancing efforts.
“The company’s goal is to secure investment to ensure the continued stability of operations and protect the long-term interests of employees, creditors, customers, and suppliers.”
Unimetals Recycling employs around 650 staff across 27 sites in the UK, including facilities in Bristol, Peterborough, Bodmin, Hartlepool, Alfreton, Derby, Exeter, Plymouth, Manchester, Newport, Aldershot, Daventry, Nottingham and Barnsley.
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