Increases to the National Living Wage, the impact of environmental legislation, VAT and HSE penalties and other regulatory pressures were also given as reasons for the appointment of James Lumb and Howard Smith from Interpath as administrators.
According to a statement from Interpath, the company’s directors had explored a number of options to stabilise the business, including potential sale and reinvestment opportunities.
However, with no solvent outcome available, the directors ultimately filed a Notice of Intention to Appoint Administrators.
James Lumb, Managing Director at Interpath and Joint Administrator, commented: “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.”
114 employees made redundant
Operations at CF Booth’s main facility in Rotherham have now ceased while the joint administrators assess options for a potential sale of the business and its assets.
A total of 54 employees have been retained to support the administrators during this process and assist with statutory duties.
However, 114 members of staff have been made redundant.
Interpath said it will be providing support to those affected “as a matter of priority”.
Founded in the 1920s and headquartered in Rotherham, CF Booth has grown from a local metal trader into a large independently-run metal recycling company with operations across Europe.
The family-owned business trades in both ferrous and non-ferrous metals and processes recycled materials for customers across the UK and internationally.
Lumb added: “CF Booth has a long and storied heritage in South Yorkshire, not least for its role as one of 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.”