PwC called in as Caparo steel enters administration

PwC called in as Caparo steel enters administration

UK steel crisis intensifies as PwC appointed administrators at Caparo Industries

ADMINISTRATORS from PwC have been appointed to Caparo Industries, part of the wider group owned by Labour peer Lord Paul, in the latest blow to the UK steel industry.

Up to 1,700 jobs are at risk after the steel manufacturer, which has 20 sites across England and Wales, filed for administration after parts of the business were hit by a collapse in steel prices and exchange rate movements.

A team of administrators, partners and directors from PwC have taken over 16 out of 20 businesses within the group. Only three Caparo subsidiaries were unaffected and continue to trade normally.

PwC said 1,700 employees across the affected businesses would be briefed on the impact of the administration and would be paid as normal.

The joint administrators said they would be working closely with Caparo’s senior management to contact key customers and suppliers with the objective of stabilising trading of the business while they assess opportunities to restructure or sell the businesses and their assets.

Matt Hammond, lead administrator and partner at PwC, said: “The impact of steel prices and exchange rates has had an impact on some parts of the Caparo Industries group. However there are businesses in the group that are not directly affected by steel prices, and likewise many where there is both strong customer demand and critical supplier support.

“Our focus for the next 36 hours is on briefing staff across the group and working closely with their management teams to ensure that every opportunity for these businesses is considered. We will be working with all parties to ensure the best outcome for all creditors of each business.”

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

3m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

4m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

5m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

5m

Related Articles

PwC accountant caught with 1700 upskirting images on phone

Accounting Firms PwC accountant caught with 1700 upskirting images on phone

6d Chris Jewers
FRC audit inspection finds no improvement on last year

Accounting Firms FRC audit inspection finds no improvement on last year

2w Chris Jewers
PwC forges maritime supply chain link with Pole Star

Accounting Firms PwC forges maritime supply chain link with Pole Star

10m Chris Warmoll, Writer
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2y Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2y Alia Shoaib, Reporter
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

2y Alia Shoaib, Reporter
PwC’s five strategic priorities for becoming ‘the leading professional services firm’

Accounting Firms PwC’s five strategic priorities for becoming ‘the leading professional services firm’

2y Emma Smith, Managing Editor
PwC publishes 12.8% BAME pay gap

Accounting Firms PwC publishes 12.8% BAME pay gap

2y Emma Smith, Managing Editor