Birkenhead-based decoiler Atlantic Steel filed for administration yesterday, according to a filing seen by Argus.
The company has been under pressure since its previous owners took a large chunk of cash out of the business as part of a management buyout in 2022.
Credit insurers began to pull cover on the business towards the end of last year, and suppliers have been calling retention of title, which protects suppliers in the event of insolvency or bankruptcy, in recent days.
Sources suggest the debt of the business at the time of administration is around £18mn. The previous owners are preferential creditors after the banks, as they were due another £5mn from the business, according to Companies House filings.
Market sources suggest it is likely the business will be bought out of administration, with other service centres interested in the assets — the lease on the site expires in the next few years but is extendable, and Atlantic operates the largest decoiler in the UK, capable of decoiling over 2.5m wide.
It is also situated on the dock at Birkenhead, which cuts inland transportation costs.
The UK HRC market has been under pressure for a number of months, in line with the struggles seen in Europe. Argus' weekly assessment was £605/t ddp West Midlands on 2 May, down from a recent peak of £700/t at the start of February. The assessment reached an all-time high of £1,200/t on 31 March 2022, and the management buyout took place later that year.
