A bankruptcy administrator has been appointed to the metals recycling company, which has been in business since the 1920s.

Two staff members from London-based Interpath Ltd. have been appointed joint administrators to CF Booth Ltd., a decades-old metals recycling company located in Rotherham, England.

Interpath is a financial advisory firm regulated by the U.K.’s Financial Conduct Authority (FCA), and staff members James Lumb and Howard Smith are acting as joint administrators to CF Booth, in a nation where the administration process equates to the bankruptcy process in the United States.

CL Booth is a family-owned business founded in the 1920s that currently employs 168 people and is engaged in ferrous and nonferrous metal recycling.
“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, value-added tax (VAT) and Health and Safety Executive (HSE) penalties and other regulatory pressures, all of which impacted cash flow,” Interpath says.

A late January report from the BBC says a 2020 incident at the CL Booth facility resulted four years later in a $1.6 million fine and a courtroom guilty plea from the company.

Interpath says CL Booth executives took steps to explore the options available, including options for sale and reinvestment; however, with no solvent outcomes available, they took the decision for file a Notice of Intention to Appoint Administrators.

The advisory firm says operations at the company’s facility at Rotherham are idled while the two administrators explore options for a possible sale of the business. However, more than 50 employees have been retained to assist the administrators while they undertake their assessment process.

“CF Booth has a long and storied heritage in South Yorkshire, not least for its role as one the largest rolling stock [locomotive and railcar] recyclers in the country, working with several of the main rail operating companies,” Lumb says.
“However, as one of the largest manufacturers of copper-based products in the U.K., 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 cash flow. 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."