Sky News understands that Unimetals Group could collapse into liquidation as soon as Tuesday, with most, if not all, of the company’s 650-strong workforce expected to be made redundant.
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The latest development comes weeks after Unimetals filed a series of notices of intention to appoint administrators, with the government on alert because of its role in the UK’s steel supply chain.
A search for a buyer over the last month has failed to produce a deal, according to industry sources.
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.
Alvarez & Marsal (A&M), the professional services firm, has been coordinating talks about the company’s future.
A number of major steel and metals groups are understood to have been approached to gauge their appetite for a deal.
Unimetals 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.
Unimetals has been approached for comment.
