It is unclear when the firm will go into liquidation, and how many jobs are at risk.
"We have worked tirelessly to explore every possible option to secure new financing for Unimetals Recycling (UK) Ltd, with the aim of meeting our financial obligations and safeguarding the future of the business," a spokesperson said on Monday.
"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.
"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."
Consulting firm Alvarez & Marsal has stepped in to assist with next steps.
Unimetals said it recognised how distressing the news was for its employees who had "worked tirelessly" since it took over Sims Metal's UK-based business in 2024.
"Their dedication, skill, and resilience are the backbone of this business," the statement continued.
"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."