British Steel Ltd in Liquidation
CBJ — British Steel Ltd has been ordered into liquidation as it struggles with industry-wide challenges as well as Brexit. At stake are about 5,000 direct jobs and another 20,000 jobs when you factor in the supply chain effect.
The company had asked for a package of support to tackle issues related to Britain’s pending departure from the European Union. Talks with the government failed to secure a bailout, and instead the Insolvency Service announced the liquidation.
“The immediate priority following my appointment as liquidator of British Steel is to continue safe operation of the site,” said David Chapman, the official receiver, referring to the Scunthorpe plant in northeast England.
The company will continue to trade and supply its customers while Chapman considers options for the business. A team from financial firm EY will work with the receiver and all parties to “secure a solution.”
Greybull Capital, which bought British Steel in 2016 for a nominal sum, said turning around the company was always going to be a challenge. It praised the trade union and management team, but said Brexit-related issues proved to be insurmountable.