One of the UK’s last remaining steel companies has been pushed into compulsory liquidation – and will fall into government control.
Speciality Steels UK (SSUK), part of the Liberty Steel empire owned by metals tycoon Sanjeev Gupta, employs nearly 1,500 people at sites in Rotherham and several other locations across South Yorkshire.
Behind Tata Steel and British Steel, it is the third-largest steel producer in the country.
Sky News reported that negotiations had been underway for a deal to rescue the firm, however, they seem to have been rendered unsuccessful.
The government-run Insolvency Service confirmed it will be acting as the liquidator. It added that Teneo Financial Advisory Limited would be assisting in running the company from now on.
While the GFG Alliance, the holding company, says it is disappointed by the decision, local politicians and unions are highly critical of the group.
The government is taking over – but it doesn’t want to own SSUK
The collapse of Speciality Steel UK (SSUK), the UK’s third-largest steel producer, did not come as a surprise to government officials, who have in recent days been planning for this outcome.
After all, the business has been limping on for some time, weighed down by financial mismanagement and a mounting debt pile. Problems began in 2021 for GFG Alliance – the holding company, which is a conglomerate run by the metals magnate Sanjeev Gupta. Its main lender, Greensill Capital, collapsed with £3.7bn of loans to GFG still outstanding. Administrators for Greensill are still trying to recover the money.
There have been legal claims and probes since then, although GFG denies any wrongdoing. The true scale of SSUK’s financial woes are not even known because the company has not filed audited accounts for more than five years. Sanjeev Gupta is being prosecuted for failing to file accounts for many of his other businesses too.
SSUK’s creditors pushed for the company’s liquidation, but the government was braced to step in. However, the development does little to provide certainty for the business’s 1,500 workers in South Yorkshire.
The government will cover wages and costs for now but, as a letter sent by the Department for Business and Trade made clear earlier this month, the government has no intention to “own SSUK”. As with British Steel, which collapsed back in April (albeit for different reasons), the government is stepping up, but is hoping a new buyer will be found soon.
The government says wages will continue to be paid by the liquidator. A spokesperson adds that the government is still “committed to a bright and sustainable future for steelmaking and steel-making jobs in the UK”.
Financial assistance was not able to be given to SSUK by the government due to its existing financial and corporate challenges, including ownership and management.
In a statement today, GFG’s chief transformational officer, Jeffrey Kabel said: “The decision to push Speciality Steel UK into compulsory liquidation, especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery, is irrational.
“The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight.
“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.
“Liberty has pursued all options to make its SSUK viable, including efficiency improvements, reorganisations, customer support, several attempts to find a buyer for the business and intensive negotiations with creditors to restructure debt liabilities. Liberty’s shareholder has invested nearly £200m, recognising the vital role steel plays in supplying the UK’s strategic defence, aerospace and energy industries.
“GFG will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver. GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment. GFG’s other significant business interests in the UK remain unaffected.
“Despite many challenges facing the group and the difficult market conditions, GFG has invested over £2bn into the UK economy since 2013, ensuring the survival of many GFG businesses despite operating losses and safeguarding thousands of jobs that would otherwise have been lost.”
Image: Sanjeev Gupta in front of a the Liberty Steel Group sign. File pic: PA
Sarah Champion, the Labour MP for Rotherham, said GFG’s statement was “full of hollow promises”.
She added: “We know Liberty is a golden goose, but one they have starved for years.
“The speciality steel we make is unique and in high demand, it makes no financial sense that GFG furloughed the plant for nearly two years.
“Strategically, the government cannot allow Liberty Steel to fail. I am confident they will do all in their power to let it flourish.”
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Charlotte Brumpton-Childs, the national officer for the GMB union, also attacked GFG.
She said: “This is another tragedy for UK steel – and the people of South Yorkshire – this time brought on by years of chronic mismanagement by the owners.
“But this represents an opportunity for the UK government to take decisive action – as it did with British Steel – to protect this vital UK industry.”
A government spokesperson said: “We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steel-making jobs in the UK.
“It is now for the independent Official Receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported.”
The pair have each been charged with murder and attempting to defeat the ends of justice.
The suspects, both of Greenock, made no plea to the two separate charges last week and were remanded in custody ahead of their next court appearance.
A 45-year-old man previously arrested in connection with assault and a 41-year-old man arrested at the same time as the two women have both been released pending further enquiries.
Police Scotland previously said officers investigating Mr Best’s death were carrying out enquiries into a report of a disturbance in Lansbury Street, Greenock, which took place between 11pm on 10 November and 3am on 11 November.
A force spokesperson said: “Enquiries are ongoing.”
Sir Keir Starmer has called the pile of fly-tipped illegal waste next to a river in Oxfordshire “utterly appalling” and said “all available powers” will be used to make those responsible cover the cost of the clean-up.
Liberal Democrat leader Sir Ed Davey said the pile of rubbish in a field beside the River Cherwell in Kidlington is now 150m long and up to 12m high, adding that water is “now lapping against the waste and carrying it into the river”.
Speaking at PMQs, Sir Ed said it is just one of many sites where organised criminal gangs are “illegally dumping their waste onto our countryside and getting away with it”.
“This is a shocking environmental emergency. So will he instruct the Environment Agency to clean it up now?” Sir Ed added.
Sir Keir responded in the House of Commons on Wednesday, calling the scenes “utterly appalling”.
The prime minister said: “A criminal investigation, as he knows, is under way. Specialist officers are tracking down those responsible.
“The Environmental Agency, in answer to this question, will use all available powers to make sure that the perpetrators cover the cost of the clean-up, which must now follow.”
Image: Pic: Sky News
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UK’s ‘biggest ecological disaster’
Sir Keir added: “We have boosted the Environment Agency’s budget for tackling waste crime by 50%, giving councils new powers to seize and crush fly-tippers, vehicles and lawbreakers can now face up to five years in jail.”
Earlier this week, Calum Miller, Liberal Democrat MP for Bicester and Woodstock, said recent heavy rainfall brought by Storm Claudia at the weekend had made the situation more urgent, and meant the rubbish was slowly floating towards the river, which eventually flows through Oxford and feeds the Thames.
Image: Calum Miller, Liberal Democrat MP for Bicester and Woodstock
Image: Pic: Sky News
Mr Miller also told Sky News on Sunday it was the first time he had seen anything on this scale, questioning whether the Environmental Agency had the resources to deal with it.
The cost of removing the waste is estimated to be more than the entire annual budget of the local council, which is about £25m.
With the site on a floodplain, Mr Miller listed what he saw as the three major environmental risks – waste being washed into the waterways, rain seeping through the waste and carrying toxins into the water and the danger of decomposing chemicals presenting a fire risk.
The site is adjacent to the A34, a busy road running through cities including Oxford and Birmingham.
He said the police had used a helicopter with a heat-seeking camera, and could see that some of the waste was beginning to decompose.
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‘Mountain’ of waste dumped
Mr Miller said he believed the Environment Agency was first made aware of the issue back in July.
He said he believed it was the work of “organised criminal gangs” and raised a “bigger systemic problem around the country”, with “dumps are cropping up in more and more places”.
He added: “My concern is the Environmental Agency lacks the resources to deal with criminal activity on this scale. I’m calling on the government to take action and ensure those who are dealing with such incidents have the powers they need to tackle it at source.”
Anna Burns, the Environment Agency’s director for the Thames area, said on Wednesday: “Most of the tipping happened before we were aware of it. As soon as we were aware, we acted quickly and decisively.”
Ms Burns said: “We are pursuing this as a criminal investigation and currently following a number of leads, and we are laser focused on pursing that investigation.
“And we are working with partners to understand the risks associated with the site.”
She said the agency will pursue the perpetrators to make them pay for the “blight on the landscape” they had caused.
An Oasis fan who fell to his death at Wembley Stadium was the victim of a “tragic accident”, a pre-inquest review has heard.
Bournemouth man Lee Claydon, 45, died following the incident at the London venueon 2 August.
Detective Sergeant James Raffin, from the Met Police, said there were “no concerns” from Mr Claydon’s toxicology report.
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Liam and Noel Gallagher performed on the same stage together for the first time in 16 years.
He also said that while Mr Claydon had drunk alcohol, this was “expected” and “normal for any of the people attending” the Oasis gig.
The force had also ruled out the possibility of suicide, he said.
He told Barnet Coroner’s Court the police had now completed their investigation into his death
He said: “From a police point of view, this is no longer a criminal prosecution.
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“We do not suspect any third party involvement.
“This, from everything we have seen, was a tragic accident.
“From a police point of view, I would say our investigation is complete.”
Image: Liam Gallagher and Noel Gallagher during the Oasis tour this year. Pic: Reuters
DS Raffin said he was aware the family had concerns over the “circumstances on the night”, and said he would pass these on to officials at Brent Council.
“All I know is there was beer everywhere, it’s slippery, he slipped apparently, we do not know the rest of it, there’s questions about the barriers.”
Brent Council will now review the police report.
Image: Oasis fans on Wembley Way, ahead of the first night of the Oasis Live ’25 tour opening at Wembley Stadium in London. Pic: PA
Mr Claydon, a landscape gardener, fell during a gig that formed part of Oasis’ sell-out Live ’25 reunion tour – their first since splitting in 2009.
The inquest opening, which took place in September, heard that the father-of-three was taken to a medical centre in Wembley after the fall, where he was pronounced dead at 10.38pm.
A post-mortem examination on 6 August gave his preliminary medical cause of death as “multiple bodily injuries”.
Senior Coroner Andrew Walker told the review hearing the full inquest will take place on 26 February next year.
He said: “It looks like we are going to be in a position next February to have reports from the London Borough of Brent over the circumstances and also we will have by then the police investigation report.”
Oasis previously said in a statement: “We are shocked and saddened to hear of the tragic death of a fan at the show.
“Oasis would like to extend our sincere condolences to the family and friends of the person involved.”
In a statement at the time of the fall, a Wembley spokesperson said: “The stadium operates to a very high health and safety standard, fully meeting legal requirements for the safety of spectators and staff, and is certified to and compliant with the ISO 45001 standard.
“We work very closely and collaboratively with all relevant event delivery stakeholders – including event owners, local authorities, the Sports Grounds Safety Authority and the police – to deliver events to high standards of safety, security and service for everyone attending or working in the venue.”