The government has taken control of the UK’s third largest steelworks in a bid to save 1,450 jobs at the site.
The high court confirmed on Thursday that Speciality Steel – previously part of Sanjeev Gupta’s Liberty Steel business – would face a compulsory liquidation.
The operation, which has plants in Rotherham and Stocksbridge in South Yorkshire, will be placed into the hands of the Official Receiver and special managers from advisory firm Teneo.
However, bosses at Speciality Steel said the move to wind up the business is “irrational”.
Jeffrey Kabel, chief transformation officer 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 (Sanjeev Gupta’s parent business) 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.”
