The plant at Scunthorpe. PIC: British steel
THERE is shock today at the news British Steel in Scunthorpe is to go into administration.
The insolvency process, puts 5,000 jobs at risk with a futher 20,000 in the supply chain as well as hitting the local economy.
Owners Greybull and the Government could not reach agreement over a potential loan.
The Government's Official Receiver will now take control of the company as it looks to find a rescue plan with accountancy firm EY as a Special Manager to seek a buyer.
It is the UK’s second-largest steel producer and was owned by the private equity group Greybull Capital.
Labour have called for the firm to be nationalised to safeguard the jobs.
British Steel workers will be paid for May, but the future look uncertain.
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