Recycler Unimetals has filed a notice of intention to appoint an administrator.
The Stratford-based firm said it had just found out a key inward investment had fallen through.
Unimetals last year lined up a deal to buy the UK Metal business from scrap giant Sims for £195m.
A Unimetals spokesperson said this week: “In recent months we have been working to refinance and recapitalise Unimetals Recycling (UK) Ltd 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.
“The company is now focused on a formal process and is exploring options with stakeholders as part of its wider refinancing efforts.
“The company has filed a notice of intention to appoint an administrator, which creates a moratorium allowing the business time to review options with its stakeholders while being protected from creditor actions.
“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.”
