Huge UK steel firm issues liquidation message as 1,450 jobs at risk | UK | News
UK steel giant Specialty Steel underwent an update today (Image: Getty)
An update has been released on the future of a major British steel firm that has gone into liquidation, putting 1,450 jobs at risk.
The Government’s Insolvency Service today published an update on Specialty Steel UK, which has sites in the British steel hubs of Sheffield and Rotherham in South Yorkshire.
The firm went into liquidation in August before the government announced it had taken control of the UK’s third-largest steelworks.
Specialty Steel UK, formerly part of Sanjeev Gupta’s Liberty Steel business, will face compulsory liquidation, the high court has confirmed. It was then placed in the hands of the government’s Official Receiver, who today announced a ‘major step forward’ for its sale.
The statement said: “The Official Receiver has confirmed a major step towards the sale of Specialty Steel UK, which includes facilities in Rotherham and Stocksbridge, following the company’s liquidation last August.
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“A period of exclusivity has been agreed with a preferred bidder, marking the next stage of a future sale agreement.
“This is expected to take approximately five weeks during which the preferred bidder will progress their bid.
“SSUK was liquidated in August 2025, with the Official Receiver managing the liquidation, including activities at the steelworks. Employees have been informed.”
Fees and costs to keep the facility operational will be covered by the Government until a buyer is found. But bosses at SSUK last year said the move to end the business was “unreasonable”.
Transformation chief Jeffrey Kabel said: “The decision to push Specialty Steel UK into compulsory liquidation is unreasonable, particularly at a time when we have received support from the world’s largest asset manager to maintain operations and facilitate creditor recovery.
“The plan submitted to the court by GFG (Sanjeev Gupta’s parent company) would secure new investment in the UK steel industry, protect jobs and create a sustainable operational platform under a new management structure with independent oversight.
“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers in terms of settlements and associated costs, despite a commercial solution being available.”
A Government spokesman said at the time: “We know this will be an extremely worrying time for staff and their families, but we are committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK.
“The independent Official Receiver is now required to carry out his duties as liquidator, including ensuring employees are paid, while we ensure staff and local communities are supported.”
