British Steel has gone into liquidation today.
The Government's Official Receiver will take control of the company as part of the insolvency process.
Accountancy firm EY will take on the role of Special Manager and attempt to find a buyer for the business.
More than 4,000 British Steel employees could become redundant with 20,000 workers from the supply chain, also facing potential job loss.
Reports suggest the firm had asked for £30m from the Government. The companies major shareholder, Greybull Capital, is to chip in with extra funding of £30m. Currently, the Government has been unable to match the request.
Greybull Capital, which specialises in turning around struggling businesses but failed to save Monarch Airlines, paid a nominal £1 to the loss-making company’s previous owner, Tata Steel, in 2016, and renamed it British Steel.
Brexit uncertainties have been blamed for the crisis but the slowdown in China's economy and US tariffs have played their part.
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Please note that the guide includes updates due to Covid-19 For instance there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading. A new 20 day moratorium for distressed businesses has also been introduced.