Unsettling times for British businesses with news that British Steel moves to insolvency with 5000 job losses expected if a buyer can’t be found for the stalwart firm. British Steel's downfall has been linked to a slump in orders from European customers due to uncertainty over the Brexit process. This blow to business was further compounded earlier this week by anticipated job losses at Jamie's Italian as the British restaurant firm moves into administration citing increased rents and competition as the proverbial nail in the coffin for the brand.
A further impact will no doubt be felt by the supply chain into both these companies - British Steel's closure could endanger up to 20,000 jobs.
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.”