Speciality Steels UK - Compulsory Liquidation

Speciality Steels UK, the UK's third-largest steelworks and a member of the Liberty Steel group owned by embattled business tycoon Sanjeev Gupta, has been placed into compulsory liquidation, with the official receiver appointed liquidator. Special managers from Teneo were also appointed.

The company, which uses scrap metal to manufacture steel, employs nearly 1,500 people across Sheffield and Rotherham.

In May, it dropped plans to restructure through a Part 26A process. More recently, Mr Gupta had reportedly hoped to secure funding from BlackRock and Fidera, which invests in distressed companies, to buy back the business. He had requested an adjournment to the liquidation application to allow him to place the company into a pre-pack administration, but the Court refused. The government has reportedly agreed to cover worker wages and operational costs while a buyer is sought.