James Lumb and Howard Smith from Interpath have been appointed joint administrators to CF Booth Limited, one of the UK’s leading metal recycling companies.
Headquartered and founded in Rotherham in the 1920s, CF Booth has grown from a local metal trader to become one of the largest independently-run metal recycling companies in Europe. A family-owned business, the Company employs 168 staff and trades both ferrous and non-ferrous metals, as well as processing recycled materials for a wide range of customers across the UK and beyond.
The Company had experienced significant trading difficulties over recent months, exacerbated by rising energy and copper prices, as well as increases to the National Living Wage and the impact of environmental legislation, VAT and HSE penalties, and other regulatory pressures, all of which impacted cashflow. In response, the directors took steps to explore the options available, including options for sale and reinvestment; however, with no solvent outcomes available, they took the difficult decision for file a Notice of Intention to Appoint Administrators.
Operations at the Company’s facility at Rotherham has now ceased while the joint administrators explore options for a possible sale of the business. A total of 54 members of staff have been retained to assist the administrators while they undertake this process in tandem with their wider statutory duties. Regrettably, however, a further 114 members of staff have been made redundant. The joint administrators and their team of employment specialists will be providing support to those impacted by redundancy as a matter of priority.
James Lumb, managing director at Interpath and joint administrator, said: “CF Booth has a long and storied heritage in South Yorkshire, not least for its role as one the largest rolling stock recyclers in the country, working with several of the main rail operating companies. However, as one of the largest manufacturers of copper-based products in the UK, the Company has also been hit hard by the tremendous surge in copper prices seen over recent months. This, coupled with broader economic headwinds, placed unsustainable pressure on cashflow.
“While we assess the options available to us, we would ask any parties who may be interested in buying the Company and its assets to make contact with us as soon as possible.”
Interested parties should contact George Brough at Interpath via george.brough@interpath.com.
