British Steel is due to enter the insolvency process after the collapse of rescue talks between parent company Greybull Capital and the government.
The move puts 5,000 jobs at risk and is the latest blow to the embattled industry.
Reuters had previously reported multiple sources saying the £30m government loan requested had not materialised, placing British Steel nearer to collapse.
Answering an emergency question in the House of Commons yesterday around British Steel’s future, business minister Andrew Stephenson said the government “will leave no stone unturned in its support for the steel industry”.
In early 2018 there were investigations in to firms that have gave advice to British Steel Pension Scheme members following concerns about the quality of the advice and fears members were being wrongly advised to transfer out of their defined benefit pension scheme.
After investigations by the FCA several advice firms stopped offering advice on DB transfers.
Accountancy firm EY will attempt to find a buyer for the business and the Government’s Official Receiver will take control of the company, reports the BBC.
The BBC also reports British Steel has been struggling with fewer orders from Europe because of uncertainty around Brexit.