British Steel on the verge of collapse with over 20,000 jobs at risk

Posted on 21 May, 2019 by admin

It has been reported (Per Sky News) this morning (21st May 2019) that the UK’s second-biggest steel producer will appoint administrators on Wednesday if it fails to obtain a £30 m government loan.

The result of failing to gain a £30m government loan would mean that over 20,000 jobs would be at risk, however, the ripples felt by a closure would be felt even greater in the local communities.

The first jobs to go would be the 4,000 workers who are based at the Scunthorpe steelworks, followed by major jobs cuts at its additional sites, and as many as 20,000 more jobs in its supply chain also at risk by the British Steel pending insolvency.

Britishsteel Getty Images

The company troubles have been linked to a lack of orders from European customers due to the increasing uncertainty over the UK’s future relationship with the EU.

British Steel has also been struggling with the weakness of Sterling since the 2016 EU referendum and the ongoing China-US trade war.

The company tired to seek emergency financial support from the UK government earlier on, however, the first amount which was put forward, £75m had been reduced to £30m.

Greybull Capital, British Steel’s shareholders and their lenders have agreed to put new money into the struggling company on the condition that the new government load be made on secured terms.

However, talks between the different stakeholder have stalled as a compromise has yet be agreed, making it more likely that the company will be placed into admiration on Wednesday.



Next Post


Leave a Reply


Recent Posts

Britishsteel Getty Images

British Steel on the verge of collapse with over 20,000 jobs at risk

Notre Dame de Paris

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams 2018

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel_Macron

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market

Oxford_Street_Selfridges_Christmas_Decorations_2017

Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office

When to decide if a building should be demolished

When old buildings should be demolished