The High Court has placed British Steel Limited into compulsory liquidation (22 May 2019), putting 25,000 jobs in the UK at risk
The Official Receiver stated: “The immediate priority following my appointment as liquidator of British Steel is to continue safe operation of the site. I appreciate that this a difficult time for the company’s employees and I want to thank them for their ongoing cooperation.
“The company in liquidation is continuing to trade and supply its customers while I consider options for the business. Staff have been paid and will continue to be employed.
“The court also appointed special managers to assist me with my work and they are engaging with staff and their representatives to keep them informed, as well as contacting British Steel’s customers.”
The court has appointed Hunter Kelly, Sam Woodward and Alan Hudson of EY to act as special managers to assist the Official Receiver with his duties as liquidator.
Despite being in compulsory liquidation, British Steel is continuing to trade and supply its customers. The special managers are in the process of contacting the company’s customers to keep them informed about the progress of the liquidation.
GMB the steelworkers’ union, has described British Steel’s collapse as devastating news for workers and UK industry.
Tim Roache, GMB general secretary, said: “This is devastating news for the thousands of workers in Scunthorpe and across the UK.
“Consecutive UK governments have failed to protect our proud steel heritage, and now this Prime Minister is overseeing its demise.
“Ministers should have been ready to make use of all the options – including nationalisation – in order to save British Steel but they either don’t care or wouldn’t take off their ideological blinkers to save hard working people and communities.
“GMB demands urgent reassurances on what the future holds for the thousands of British steelworkers and their families.”