British Steel collapses as administration threatens thousands of jobs.

File photo shows a flag with a British Steel logo at the
entrance to the steelworks plant in Scunthorpe,
England, now owned by British Steel.
(Anna Gowthorpe/PA via AP)

British Steel has fallen into administration, putting up to 25,000 jobs directly and indirectly at risk.

The announcement threatens thousands directly at Scunthorpe’s huge steel plant and hundreds more on Teeside – with around 20,000 jobs also at risk in the supply chain and could spell disaster for the local communities.

Britain’s second largest steelmaker had announced last Thursday that it had enough cash to continue to operate despite orders tumbling, after securing the backing of lenders and shareholders.

The firm had been hoping an emergency loan from the government would be enough to keep it afloat and stop it having to call in the administrators.

By By Tom McArthur.
Full story at Yahoo News.