THE Government yesterday took control of Britain’s third largest steelworks — putting 1,500 jobs at risk.
Speciality Steel UK, pictured above, collapsed into administration as the High Court granted a compulsory winding-up order.
It owes creditors hundreds of millions of pounds. The company is part of the Liberty Steel Group founded by controversial tycoon Sanjeev Gupta.
Judge Edward Mellor deemed it “hopelessly insolvent” with just £600,000 in the bank — and a monthly wage bill of £3.7million.
The steelworks employs 1,450 people in Rotherham and Sheffield, South Yorks.
It will be taken over by the Official Receiver and special managers from consultancy firm Teneo — appointed to run it on behalf of the liquidator.
But Speciality Steel bosses slammed the move to wind up the business.
Its chief transformation officer Jeffrey Kabel claimed a plan by Mr Gupta’s parent business GFG — presented to the court — would have secured new investment.
Mr Kabel said: “The decision to push Speciality Steel UK into compulsory liquidation is irrational — especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery.
“Instead, liquidation will impose prolonged uncertainty and significant costs on UK taxpayers for settlements and expenses.”
Speciality Steel UK collapsed into administration putting 1,500 jobs at risk[/caption]
M&S JOBS LIFT
MARKS & SPENCER is planning to build a huge automated distribution centre which will create 3,000 jobs — as it aims to double the size of its food business become a “destination for the weekly shop”.
M&S — recently crippled by a cyber attack — is investing £340million in the Northants warehouse, opening in 2029.
MD Alex Freudmann said it would boost product availability and lower long-term costs.
SMITH’S SLIPS
WH SMITH saw its share price plunge as it revealed an accounting error in the US means its yearly profits will be lower than expected.
Shares in the London-listed retailer were down by about a third in early trading.
The firm discovered its North America trading profit had been overstated by about £30million — meaning it now expects it to be about £25million for the year to August.
BORROWING FALL BOOST
GOVERNMENT borrowing was lower than expected in July, in a pre-Budget boost for Chancellor Rachel Reeves.
It slowed to £1.1billion, the Office for National Statistics said.
It was the lowest in three years and £2.3billion less than July last year. A rise in self-assessed income tax and National Insurance helped increase tax receipts.
Figures showed the amount brought in, typically via taxes, was £100.1billion for the month, up £8.8billion from last July.
Ms Reeves may need to raise taxes in the autumn to plug a £51billion black hole.