Birkenhead-based decoiler Atlantic Steel has filed for administration, as revealed in a filing reviewed by Argus. The company has faced challenges since its previous owners withdrew a significant amount of cash from the business during a management buyout in 2022.Credit insurers started to withdraw cover on the business towards the end of the previous year, and suppliers have been invoking retention of title clauses in recent days to protect themselves in case of insolvency or bankruptcy.
Reports indicate that the business's debt at the time of administration is approximately ÂŁ18 million. The former owners are considered preferential creditors after the banks, as they were owed an additional ÂŁ5 million from the business, as per Companies House filings.
Market insiders anticipate that the business is likely to be acquired out of administration, with other service centers showing interest in its assets. Atlantic Steel operates the largest decoiler in the UK, capable of handling widths exceeding 2.5 meters. Situated on the dock at Birkenhead, the location helps reduce inland transportation costs.
The UK hot-rolled coil (HRC) market has been facing challenges for several months, mirroring the difficulties seen in Europe. Argus' weekly assessment on May 2 was ÂŁ605 per tonne ddp West Midlands, down from a peak of ÂŁ700 per tonne in early February. The assessment hit an all-time high of ÂŁ1,200 per tonne on March 31, 2022, with the management buyout occurring later that year.
