Liberty Steel’s operations in Rotherham and Sheffield are under threat as the company faces a winding-up hearing this week over unpaid debts. Creditors, including Harsco Metals, have petitioned the court to liquidate Liberty Speciality Steel UK, potentially leading to the closure of its plants and the loss of around 1,450 jobs.
The company, part of Sanjeev Gupta’s GFG Alliance, is seeking a court adjournment to avoid immediate collapse. If unsuccessful, its assets could be sold to repay creditors. Liberty has been under financial strain since the 2021 collapse of its primary lender, Greensill Capital, which severely impacted its access to third-party financing.
Despite ongoing negotiations with creditors, the UK government has indicated it will not intervene to cover Liberty’s debts, although it may consider options if the business enters insolvency. Industry observers are watching closely for any signs of a rescue plan or new ownership prospects.
The outcome of the court decision could have significant implications for the UK’s speciality steel sector and regional employment.
