Shock British Steel insolvency will affect SME’s throughout the supply chain
The recent news that British Steel has been placed in compulsory liquidation was a blow to the manufacturing industry, in real terms this affect is:
- 5,000 jobs at risk
- knock-on effect endangering 20,000 in the supply chain.
The Government’s Official Receiver has taken control of the company as part of the liquidation process. The initial statement shows their immediate priority is try and keep the company trading and supplying its customers.
Responding to the news, Mike Cherry, National Chairman at the Federation of Small Businesses, said “This is a hugely unsettling time for the British Steel workforce, who will be devastated by this announcement. The news is also extremely worrying for the large network of small businesses involved in the company’s supply chain, who will now be very concerned about the future.”
“The closure will have a huge knock on impact across the communities surrounding the company’s plants. A raft of small firms like caterers, cafes, cleaners, shops and visitor attractions, all of which employs their own staff, rely heavily on British Steel.”
“Businesses throughout the supply chain will need guidance and support as the situation develops.”
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