Wed, 22 May 2019 | ADMINISTRATION
News that British Steel is to be placed into the hands of administrators comes as no surprise as it was always going to be a tall order to secure more funding from the government. In the event, the government said no to a £30 million lifeline loan, which would have represented a high risk. British Steel had only just borrowed £100 million from the government in April.
EY accountants are currently finalising the insolvency process, but whether the this will protect the livelihoods of around 5,000 workers is doubtful.
British Steel's supplier chain is also going to be badly affected, with several contractor firms expected to also hit the wall.
Larger suppliers, like Hargreaves Services Plc, are expected to weather the storm, though not without a significant knock to revenues and pretax profits. Hargreaves employs about 170 people directly supporting British Steel operations.
All in all, there may be as many as 20,000 supplier chain jobs at risk.
Effects will also be felt on a local level. The base of British Steel's operations is Scunthorpe in North Lincolnshire. The town and its small businesses will undoubtedly suffer and residents have spoken about the potential for it to turn into a ghost town.
Apparently the private equity owners Greybull Capital had turned the business around (they had bought the business for one pound in 2016) to the point that it recently returned a profit following a rebranding.
Brexit has been blamed for a the slowdown in orders from Europe, although it could be a case of not being competitive enough against the giant Chinese steel manufacturers.
Manufactures a range of specialist seating for those with debilitating conditions, including neurological conditions, along with specialist paediatric care chair manufacturing. Unlimited bespoke manufacturing capabilities. Serves a range of sectors i...
LEASEHOLD
Provides a one-stop solution for customers in multiple sectors, including aerospace, defence, automotive and rail.Client base comprises well-established businesses with strong working relationships, with some in place for over 30 years.Utilises a hig...
LEASEHOLD
Specialist bottling company with a niche in short-run bottling of high-value Scotch Whisky fine rums brandy & gin. Provides a turnkey service including storage re-racking finishing & reworking of bottled goods. Offers invited.
|
11
|
|
Aug
|
PPL Corp. seeks sale of Western Power Distribution | BUSINESS SALE
PPL Corporation has announced that it has put its UK utility...
|
10
|
|
Aug
|
Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE
Samworth Brothers has completed the £6.4 million acqui...
|
07
|
|
Aug
|
Wrexham-based wire firm falls into administration | ADMINISTRATION
Wire manufacturer Wrexham Wire has fallen into administratio...
Sign up to receive our acquisition alert emails to get your FREE guide
|
05
|
|
Jan
|
Airline’s engineering arm enters administration | ADMINISTRATION
Monarch’s last surviving division has fallen into admi...
|
22
|
|
Jun
|
My Local convenience store chain heads towards administration | ADMINISTRATION
Convenience store chain My Local faces being pushed into adm...
|
18
|
|
Aug
|
Morrisons in talks to sell convenience stores | BUSINESS SALE
Morrisons is in advanced talks to sell its chain of convenie...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources