17 Jun 2019

British Steel Limited - advice for suppliers and customers

British Steel Limited (BSL) was placed into compulsory liquidation on 22 May 2019. The High Court appointed the Official Receiver as liquidator of the Company and S J Woodward, R H Kelly and A M Hudson as special managers to support him. The Company’s subsidiaries are not in insolvency and are continuing to trade as normal.

Although BSL is in liquidation, the Government has provided an indemnity to the Official Receiver so that British Steel can continue to trade and fulfill its current and future order book. At the same time, work continues to identify a buyer for the whole business. The company retains the support of its workforce, suppliers and customers.

The Official Receiver and the Government are seeking to secure a successful future for this business and its suppliers, customers and dedicated staff that is in the interests of its creditors.
As a supplier to, or customer of, BSL we appreciate this must be a worrying time for you and your business. To respond to this, Make UK (the nation’s leading manufacturers association) is leading a supply chain group – alongside the Government’s British Steel Support Group made up of local MPs, business organisations, trade unions and local business leaders – to map the supply chain and provide direction to relevant advice.

If your company is facing challenges as a result of BSL’s liquidation process, ahead of what we very much hope to be a new chapter for the business, the following areas of support may prove useful:

  • If you had outstanding debts due from BSL on 22 May 2019 then the special manager will have contacted, or will be in the process of contacting, you. Further information is available from this link https://www.gov.uk/government/news/british-steel-limited-in-liquidation-information-for-customers-employees-and-creditors
  • The National Business Support Helpline provides advice on a range of business-related issues. Tel: 0300 456 3565, email: enquiries@businesssupporthelpline.org and website https://www.gov.uk/business-support-helpline
  • Statement from UK Finance (presentative body for the high street banks): “UK finance providers are on hand to offer support and guidance for customers directly or indirectly impacted by British Steel, with the finance industry in close contact with businesses that are potentially affected. Customers with concerns should contact their finance providers as soon as possible.”
  • HMRC’s Business Payment Support Service https://www.gov.uk/difficulties-paying-hmrc provides tax support to businesses
  • The Humber Business Growth Hub https://www.humbergrowthhub.org/ can signpost you to a range of business support information and organisations who provide a wide variety of services, including funding, training courses, events, support, advice, mentoring and business services who can help your business
  • Business Lincolnshire https://www.businesslincolnshire.com/ is set up to help support Greater Lincolnshire-based businesses to start and grow. Business Lincolnshire hosts a Growth Hub – a single place to go to for business experts and mentors, support and guidance, grants and finance
  • Tees Business Compass https://www.teesbusinesscompass.co.uk/ helps ambitious businesses realise their growth potential by offering access to a range of practical services, from local business information, assessing growth options through to unlocking finance and funding streams
  • Further growth hubs https://www.lepnetwork.net/growth-hubs/