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.”
Sarah, Duchess of York, has been dropped as a patron of two charities after it emerged she sent an email apologising to paedophile financier Jeffrey Epstein for publicly disowning him.
The groups, children’s hospice Julia’s House and food allergy charity The Natasha Allergy Research Foundation, issued statements on Monday.
Julia’s House said: “Following the information shared this weekend on the Duchess of York’s correspondence with Jeffrey Epstein, Julia’s House has taken the decision that it would be inappropriate for her to continue as a patron of the charity.
“We have advised the Duchess of York of this decision and thank her for her past support.”
Nadim and Tanya Ednan-Laperouse, founders of The Natasha Allergy Research Foundation, said: “We were disturbed to read of Sarah, Duchess of York’s, correspondence with Jeffrey Epstein.
“Sarah Ferguson has not been actively involved with the charity for some years. She was a patron but, in the light of the recent revelations, we have taken the decision that it would be inappropriate for her to continue to be associated with the charity. We would like to thank her for her kindness and support in the past.”
Julia’s House provides support for “families caring for a child with a life-limiting or life-threatening condition”, according to its website.
The Natasha Allergy Research Foundation aims to prevent and end allergic disease, according to the Charity Commission, by bringing “about positive change by focusing on law and policies, medical research and educating and raising allergy awareness”.
It comes after it emergedthe duchess had written a gushing message to Epstein, describing him as her “supreme friend”.
According to The Sun on Sunday, the ex-wife of Prince Andrew had emailed him in April 2011 and “humbly apologised” for linking him to paedophilia in the media a few weeks previously.
She said in the message that he was a “steadfast, generous and supreme friend” to her.
Her spokesperson has since said she only wrote the note because Epstein had threatened to sue her.
The duchess’s interview with the Evening Standard on 7 March 2011 saw her apologise for accepting £15,000 from Epstein.
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‘Duchess fell for Epstein’s lies’
She told the newspaper: “I abhor paedophilia and any sexual abuse of children and know that this was a gigantic error of judgment on my behalf. I am just so contrite, I cannot say.
“Whenever I can, I will repay the money and have nothing ever to do with Jeffrey Epstein ever again.”
But The Sun on Sunday reported that little over a month later, the duchess sent an email to the sex offender from her private account.
She apologised to him and said she was “bedridden with fear”, the paper reported.
Image: Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP
‘Her first thoughts are with his victims’
In a statement at the weekend, the duchess’s spokesman said: “The duchess spoke of her regret about her association with Epstein many years ago, and as they have always been, her first thoughts are with his victims.
“Like many people, she was taken in by his lies.
“As soon as she was aware of the extent of the allegations against him, she not only cut off contact but condemned him publicly, to the extent that he then threatened to sue her for defamation for associating him with paedophilia.
“She does not resile from anything she said then.
“This email was sent in the context of advice the duchess was given to try to assuage Epstein and his threats.”
Police have appealed for help to identify an additional 18 people suspected of public order offences and assaults on emergency workers on the day of the Unite the Kingdom march.
Between 110,000 and 150,000 people attended the rally in central London on 13 September, the Metropolitan Police estimates.
Protesters heard a number of speeches, including from far-right activist Tommy Robinson, who organised the rally and called it the “biggest freedom of speech” event in British history.
Image: Pics: Met Police
An anti-racism counter-protest, attended by about 5,000 campaigners, also took place, with the two groups clashing on Whitehall and Trafalgar Square, separated by lines of police.
Police previously said 24 people were arrested at the protests, 23 of whom are believed to have been involved in the Unite the Kingdom rally, while one was believed to be involved in the counter-protest.
Officers now want to speak to a further 18 people “in connection with a range of public order offences and assaults on emergency workers” and have released 16 new images.
“Our post-event investigation continues and officers have looked through hundreds of hours of CCTV footage to review evidence to help with further inquiries,” said Detective Chief Inspector Natalie Norris.
“We have 28 people we want to speak to in connection with a range of offences – and we are again appealing for the public’s help to track them down.”
People may have travelled from outside London, so she said she was asking people “across the country” to look at a number of pictures that have been released and to get in touch if they recognise anyone.
The UK is set to push for a peace plan for the Middle East at the UN General Assembly after recognising the state of Palestine.
Foreign Secretary Yvette Cooper is expected to use the summit to address civilian suffering in war-torn Gaza and aim to strengthen “the international consensus on our pathway for peace in the Middle East”.
She will hold bilateral meetings to advance elements of the peace plan, including security measures to ensure Hamas has no role in the future governance of Gaza, according to the Foreign Office.
Prime Minister Sir Keir Starmer, who won’t attend the summit, announced on Sunday that the UK recognises Palestine as an independent state, to “revive the hope of peace for the Palestinians and Israelis, and a two-state solution”.
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‘Ordinary people deserve to live in peace’
It is a significant moment in the history of Britain’s involvement in the region, and comes as the number of people killed during the Gaza conflict continues to rise and conditions for the people trapped become even more desperate.
Australia, Canada and Portugal made similar announcements, with France expected to follow suit at the UN on Monday.
The move was met with fierce backlash by Israel, with Prime Minister Benjamin Netanyahu saying it was “absurd” and a “huge reward to terrorism”. He also vowed that a Palestinian state “will not happen”.
Image: Flags of Palestine and Israel are projected onto the Eiffel Tower. Pic: AP/Christophe Ena
Separately, an Israeli official said the “full or partial annexation of the West Bank” is now “an option under consideration in response” to the move.
US President Donald Trump also addressed the coordinated recognition of the state of Palestine by the UK, Australia, Canada and Portugal, saying “I’m not in that camp” because recognising a Palestinian state was “rewarding Hamas”.
The families of hostages held in Gaza called it a “betrayal of humanity and a move that rewards Hamas while 48 hostages remain in captivity”.
Image: A tent camp for displaced Palestinians stretches along the Muwasi, in southern Gaza. Pic: AP/Jehad Alshrafi
Palestinian President Mahmoud Abbas said the recognition of the state of Palestine would allow it to “live side by side with the State of Israel in security, peace, and good neighbourliness”.
Senior Hamas official Mahmoud Mardawi reportedly celebrated the move as a victory for “the justice of our cause”.
But Sir Keir was clear to emphasise that recognition of Palestine was “not a reward for Hamas”, saying the terror group “can have no future, no role in government, no role in security” in a future state and confirming plans to ratchet up sanctions on Hamas “in the coming weeks”.
“Our call for a genuine two-state solution is the exact opposite of their hateful vision,” he added.
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Gazans react after Starmer recognises Palestinian statehood
The prime minister also repeated his criticism of Israel, which for nearly two years has waged war on the densely populated Gaza Strip.
“The Israeli government’s relentless and increasing bombardment of Gaza, the offensive of recent weeks, the starvation and devastation are utterly intolerable,” he said.
Image: Destroyed buildings in Gaza, as seen from Israeli side of the border. Pic: Reuters
The number of people killed in Gaza since the IDF launched its offensive following the 7 October attacks has now risen above 65,000, according to Hamas-run health authorities.
“This death and destruction horrifies all of us. It must end,” Sir Keir said.
Image: An updated map of Israel and Palestine on the Foreign, Commonwealth & Development Office website
In recognising Palestine as a state, the UK does so based on 1967 borders to be finalised as part of future negotiations. It would be led by a “reformed Palestinian Authority”.
The UK also acknowledges “all legal rights and obligations of statehood” for Palestine.
An updated map on the UK’s Foreign, Commonwealth & Development Office website now has the West Bank and Gaza labelled as ‘Palestine’ rather than the ‘Occupied Palestinian Territories’. This change has been rolled out across the website.