British Steel enters insolvency risking 5000 jobs

British Steel goes into compulsory liquidation endangering 5, 000 jobs, 3000 at Scunthorpe and another 800 in Teeside, north-eastern England, and rest in France, Netherlands and sales offices around the world,  at risk in UK and endangering over 20, 000 in the supply chain.

The move follows a breakdown in rescue talks between the government and Greybull Capital. the company’s owner  who bought from Tata Steel in 2016. for £1, and rebranded as British Steel to return to profit recently.

The government’s official receiver has taken ,control of the company as part of the liquidation process, with EY, as the Special Manager assisting them.

The Official Receiver said British Steel Ltd has been wound up in the High Court, and their immediate priority  was to continue safe operation of the site and said ” I appreciate that this is a difficult time for the company’s employees and  I want to thank them for the ongoing co-operation. Staff have been paid and will continue to be employed”.

British Steel’s trouble have been linked to a slump in orders from European customers due to uncertainty over the Brexit process. The firm also struggled since the EU referendum in 2016 and the escalating US-China trade war.

British Steel admitted it needs further financial support from the government to help it address “Brexit related issues”.