Sanjeev Gupta, once hailed as the savior of UK steel, is now fighting to keep his crumbling empire afloat. His firm, Liberty Speciality Steels UK (SSUK), is facing a winding-up petition that could result in compulsory liquidation as early as this week. After a last-ditch plea for government aid was turned down, the future of nearly 1,500 steelworkers—and a sizable portion of Britain’s industrial base—is hanging by a thread.
With creditors circling and courts preparing for a crucial hearing, the fate of SSUK could mark a turning point for the UK steel sector.
The Winding-Up Petition Explained
Who Filed It and Why
The legal move was initiated by Harsco Metals Group, a longtime supplier to SSUK, claiming unpaid bills totalling nearly £4 million. They’ve launched a winding-up petition—an aggressive legal mechanism to force a company into liquidation and recoup debts through asset sales.
Creditors Piling On
Harsco is not alone. Other firms, including Swallownest Engineering, Kings Of Rotherham, RS Components, and C & J Welding, have reportedly backed the petition. This multi-pronged pressure reveals a deeper financial rot within Liberty’s operations and underscores the seriousness of the threat.
Financial Turmoil at Liberty Speciality Steels UK
Mounting Debts and Operational Strain
SSUK’s troubles are far from sudden. The company has been in survival mode since the 2021 collapse of Greensill Capital—Gupta’s primary financier. Coupled with soaring energy costs and industry volatility, Liberty has struggled to stay afloat.
Failed Rescue Attempts and Court Battles
A proposed debt restructuring plan was recently pulled after it failed to gain sufficient creditor support. Without new funding or legal protection, SSUK has run out of financial lifelines—and time.
Rejected Government Aid and Political Backdrop
Why Westminster Declined Support
Gupta recently appealed to the UK government for emergency financial aid to rescue SSUK. The plea was rejected, with officials citing concerns about transparency and governance at Liberty and its parent group, GFG Alliance.
How This Differs From the British Steel Bailout
This comes in stark contrast to the government’s recent intervention to save British Steel’s Scunthorpe plant. Unlike Liberty, British Steel is seen as a more stable and strategically critical entity—despite its foreign ownership.
The Human Cost of Potential Liquidation
1,450 Jobs in Jeopardy
The fallout could be devastating. Liberty Speciality Steels employs around 1,450 workers, mainly in South Yorkshire. If the company folds, these jobs—and thousands more in the local supply chain—would vanish virtually overnight.
Regional Economic Impact
Sheffield and Rotherham, both historic steel towns, stand to be hardest hit. Local leaders have already voiced concern, urging the government to step in or at least provide transition support if liquidation proceeds.
Gupta’s Growing Legal Troubles
Court Cases Over Financial Mismanagement
Adding fuel to the fire, Gupta and his directors are being prosecuted for failing to file financial statements for over 70 companies. While they’ve pleaded not guilty, the legal cloud over the business only deepens investor mistrust.
Ongoing Investigations Into GFG Alliance
The Serious Fraud Office is continuing its probe into GFG Alliance for alleged fraudulent trading and money laundering. With multiple international entities involved, the case could drag on for years—further eroding confidence.
