Thousands of jobs at risk at British Steel enters receivership
Around 5,000 direct jobs and thousands more in the supply chain are at risk following the High Court’s decision to wind up British Steel.
The company, which employs 3,000 staff at its Scunthorpe plant and 800 on Teesside and north-east England, has been placed into receivership after rescue talks collapsed between the government and Greybull Capital, which bought Tata Steel’s long products business in 2016 and rebranded it as British Steel.
“The government has worked tirelessly with British Steel, its owner Greybull Capital, and lenders to explore all potential options to secure a solution for British Steel,” said business secretary Greg Clark. “We have shown our willingness to act, having already provided the company with a £120m bridging facility to enable it to meet its emissions trading compliance costs.
“The government can only act within the law, which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.”
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