British Steel, which had been a crowning glory in the British industrial arena, has fallen and listed insolvency. The company collapsed on Wednesday and affected over 5000 jobs.
In fact, the company can even endanger another 20000 indirect employees who have been a part of the supply chain.
The negotiations have been there amid the Government and the owner of the company. However, the talks failed miserably and the High Court has ordered a complete liquidation of the company.
The Official Receiver of Britain has now taken over the reins of the company and will guide it through the liquidation process.
The company was actually seeking a grant of loan amounting to approximately 75 million pounds or $ 95 million from the government.
This was to cover the losses that it was inviting. British Steel blamed this need was due to the drying of orders from the European Union because of the Brexit. UK Steel, which is the trade association of the nation’s steel industry stated
“Incompetent to solve the trading connection the UK will have with its influential market in just five months’time, planning and decision making has become nightmarish in its complexity,”
Incidentally, it may be worthwhile to note that the company has already received a loan of 120 million pounds or $ 152 million.
The company employs 4100 people in its plant in Britain and has over 900 employees in other countries across the globe.
Though the company has been blaming Brexit for the issues it is facing, it should be worthwhile to notice that several steel manufacturers in Britain have been facing huge pressure on account of the cheaper competition from China.