On August 21, 2025, the United Kingdom’s third-largest steelworks, Speciality Steels UK (SSUK), entered a new era—one marked by government control, legal drama, and a cloud of uncertainty for nearly 1,500 workers in Rotherham, Sheffield, and Stocksbridge. The move came after insolvency courts granted a compulsory winding up order, sought by creditors owed hundreds of millions of pounds by SSUK, a crucial part of Sanjeev Gupta’s embattled Liberty Steel empire.
The court’s decision, reported by both BBC and The Guardian, placed SSUK into the hands of the official receiver—a government-appointed liquidator—and special managers from consultancy firm Teneo. The government agreed to cover ongoing wages and operational costs while a buyer is sought, aiming to safeguard jobs and the possibility of reviving steel production at the mothballed sites. For the steel towns of South Yorkshire, the news landed with a familiar thud, echoing decades of industrial uncertainty.
Justice James Mellor, presiding over the High Court in London, was unequivocal in his assessment. "It is quite clear that there are special managers lined up who have the support of the government. I consider by far the preferable approach is to make a winding-up order," he said, as cited in The Guardian. The company’s financial situation was dire: just £600,000 in the bank against a monthly wage bill of £3.7 million, and a parent group with 15 entities already in insolvency proceedings across nine jurisdictions, according to BBC.
SSUK’s troubles have deep roots. The company, once a shining star in Gupta’s global portfolio, has produced almost no steel for over a year. Its parent, Liberty Steel, was thrown into turmoil after the 2021 collapse of Greensill Capital, its main financial backer, which had lent the broader Gupta Family Group (GFG) Alliance about $4.5 billion (£3.3 billion). As The Guardian notes, administrators for Greensill are now scrambling to recover that money on behalf of creditors, including Citibank, which alone is owed £233 million.
Gupta, once hailed as the “saviour of steel” for his bold acquisitions and promises to revive struggling mills, now finds himself at the center of a storm. The UK’s Serious Fraud Office has been investigating GFG Alliance since 2021 over allegations of fraud, fraudulent trading, and money laundering related to Greensill’s financing. Gupta, currently based in the United Arab Emirates and managing his remaining Australian business, has already lost control of several assets in the UK, Europe, Singapore, and Australia. Yet SSUK remained his flagship UK metals asset—a status that now hangs in the balance.
Liberty Steel’s chief transformation officer, Jeffrey Kabel, did not hide his frustration after the court’s decision. Speaking to BBC, he said, "We are by far the best company to run this business. We’ve run it for 10 years. We’ve put a lot of blood, sweat, and a huge amount of money into it." Kabel also expressed disappointment that the winding up order would, in his view, "impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution." He remained hopeful, however, that Liberty Steel could participate in the sales process and potentially buy SSUK back, stating, "We’ve got the largest asset manager in the world BlackRock, supporting us, and several others. We’ll see what happens with the sales process but we’ll be there to buy it back."
Gupta’s legal team had argued for a four-week adjournment to pursue a “pre-pack administration”—a process that would have allowed the company to sell its assets to a bidder (in this case, with funding from BlackRock and Fidera) and shed much of its debt. But creditors, weary of months of uncertainty and failed negotiations, had “had enough” of waiting, according to The Guardian. Ryan Perkins, representing Greensill Capital, told the court that UK steel-making would be better served if SSUK’s assets were sold off under the supervision of independent special managers, rather than through an administration process led by Gupta’s team.
The government’s intervention is the second such move in the steel industry this year. In April, ministers stepped in to take over the running of British Steel’s Scunthorpe plant, fearing that its Chinese owners would let the blast furnaces cool beyond repair. Business Minister Jonathan Reynolds described the steelworks and its workers as “important strategic assets for the UK,” emphasizing the government’s desire to see steel production restart at the affected sites. According to a letter from the Department for Business and Trade entered in court, independent third parties have already expressed interest in returning the sites to steel-making—a glimmer of hope for the beleaguered workforce.
Yet, as the government steps in to steady the ship, it has made clear that it is not currently negotiating to provide new financing for SSUK. Its immediate priority is to keep the plants operational and the workers paid, while seeking a buyer committed to reviving production. The GMB union, which represents many of the affected workers, called the court decision “another tragedy for UK steel,” underscoring the human cost of industrial decline and the ongoing struggle to preserve the nation’s manufacturing base.
For the people of Rotherham, Sheffield, and Stocksbridge, the future remains uncertain. The steelworks, once a symbol of industrial might, now faces a critical juncture. Will a new owner emerge with the vision and resources to restart production and secure jobs? Or will SSUK join the long list of British industrial casualties? The coming months will be decisive, as government-appointed managers, creditors, and would-be investors vie to shape the next chapter of this storied enterprise.
As the dust settles, one thing is clear: the fate of SSUK is more than a business story. It is a test of the UK’s resolve to protect its industrial heritage, its workers, and its future as a manufacturing nation. The stakes—for the steel towns of South Yorkshire and for Britain as a whole—have rarely been higher.
