British Steel owners Greybull face government probe
The private equity owners of British Steel, Greybull Capital, are reportedly set to face a grilling from MPs over the insolvency of the manufacturing business.
A formal annoucement of a session in which Greybull will have to give evidence and face questioning before MPs is expected in early June, according to a report by The Guardian.
It’s been suggested that Greybull founder Marc Meyohas and partner Daniel Goldstein could be called to appear in front of a business select committee chaired by Labour Leeds West MP Rachel Reeves .
Leeds-based private equity business Endless has been pipped as one of the organisations looking to buy the business, which was ordered into compulsory liquidation on Wednesday (22 May).
The government’s official receiver took control of the business, and it is thought they will be looking for a quick sale to ensure it does not strain the taxpayer over a long period.
Following the acquisition of British Steel by Greybull Capital in 2016 from Tata Steel (it was formerly their Long Products division) the company made profits in 2017 and 2018.
However the uncertainty surrounding Brexit has caused customers to go elsewhere. The steel manufacturing industry often has long lead times and issues have only come to the fore this year, compounded by a £120m EU carbon emissions bill.
Greybull Capital has made pan-industry investments of varying degrees of success, including airline Monarch, the M Local convenience store chain and electrical goods retailer Comet.