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.”
Richard Oddy, Casper Kaars Sijpesteijn and Rory Goldthorpe have been appointed to senior roles in key sectors of high growth, with a further 17 junior and experienced hires
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report
Mid-sized British firms are currently growing faster and generating more profit than their counterparts in Germany, France, Italy and Spain, despite uncertainty surrounding Brexit, says the report
Richard White, Nicola Westbrooke and Richard Ross all join from KPMG, where they oversaw the real estate tax practice
Sheryl Davis joins the firm's High Wycombe office from Barnes Roffe