Blastr is still preferred bidder take over the business

The Insolvency Service has issued a statement amid reports exclusive rescue talks for Speciality Steel had ‘collapsed’.

The company, which employs 1,300 at sites in Stocksbridge and Rotherham, has been under the control of the Official Receiver - part of the government’s Insolvency Service - since it was put into liquidation last summer.

Steel is extracted from the furnace at Stocksbridge Billet Mill at 1,200°C in preparation for hot rolling. | SSUK

placeholder image — Steel is extracted from the furnace at Stocksbridge Billet Mill at 1,200°C in preparation for hot rolling. | SSUK

In April, the Official Receiver announced a five-week exclusivity period with preferred bidder Norwegian firm Blastr.

Over the weekend, The Times reported the period had lapsed after talks ‘collapsed’, throwing the rescue into uncertainty.

A spokesperson for the Insolvency Service said: "The period of exclusivity came to an end, as expected, and we continue to engage with the preferred bidder. “Continued speculation regarding the future of the site is unhelpful, not least to the employees, as the Official Receiver continues to pursue a successful sale."