British Steel insolvency puts supply chain at risk

British Steel has been placed in compulsory liquidation, putting 5,000 jobs at risk and with the knock-on effect endangering 20,000 in the supply chain.

The Government’s Official Receiver has taken control of the company as part of the liquidation process.

In a statement, the Official Receiver said that the immediate priority its appointment as liquidator is to continue safe operation of the site. The company is continuing to trade and supply its customers while the search for a buye begins.

Hunter Kelly, Sam Woodward and Alan Hudson of EY have been appointed to act as Special Managers to assist the Official Receiver with his duties as liquidator.

Responding to the news, Mike Cherry, National Chairman at the Federation of Small Businesses, said “This is a hugely unsettling time for the British Steel workforce, who will be devastated by this announcement. The news is also extremely worrying for the large network of small businesses involved in the company’s supply chain, who will now be very concerned about the future.”

“The closure will have a huge knock on impact across the communities surrounding the company’s plants. A raft of small firms like caterers, cafes, cleaners, shops and visitor attractions, all of which employs their own staff, rely heavily on British Steel.”

“Businesses throughout the supply chain will need guidance and support as the situation develops.”