Sheffield steel: Official Receiver makes pre-Christmas announcement on sale of Speciality Steel
The Insolvency Service has issued a pre-Christmas update on the sale of crisis-hit Speciality Steel, which employs hundreds in Rotherham and Sheffield.
The company is in the hands of the Official Receiver - a government appointed liquidator - and special managers.
It comes after insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds.
Previously part of Sanjeev Gupta’s Liberty Steel empire, Speciality Steel UK employs 1,450 at sites in Rotherham, Wednesbury and Stocksbridge, Sheffield.
An Insolvency Service spokesperson told The Star: "We can confirm that the Official Receiver continues to progress bids for the sale of Speciality Steel UK. The sales process is ongoing, with the aim to complete a sale at the earliest opportunity.”
In October, minister for industry Chris McDonald MP said he had a “high level of confidence” a buyer would be found.
He commented after a tour of the Stocksbridge site where he met the Official Receiver, special managers leading on the company’s liquidation, SSUK senior management.
South Yorkshire politicians and trade union representatives.
It is understood Rotherham has not produced anything since July 2024 and Stocksbridge only sporadically.
Workers are on a form of furlough, with the government pumping in £50m to cover wages and other costs.
In October, Coun Chris Read, leader of Rotherham Council, said at stake were “not just jobs” but “livelihoods, communities, and a proud legacy of British manufacturing excellence.”
He added: “Steel production in Parkgate has stood at the heart of Rotherham’s identity for two hundred years.
“The closure of these sites would not only be a devastating blow to our borough and South Yorkshire — but it would also leave a hole in the UK’s sovereign capability to produce the high-grade steels essential for defence, aerospace, and clean energy.”
In March, it was reported SSUK had debts of £618m.
Speciality Steel UK was among scores of companies owned by parent company GFG Alliance, led by Sanjeev Gupta.
GFG Alliance borrowed millions from Greensill Capital to pay suppliers. Greensill collapsed in March 2021. Creditors, including investment bank UBS, were left trying to get at least some of their £288m back.