British Steel’s chief executive is to step down

Credit: British Steel

The body handling the sale of Scunthorpe-based British Steel has confirmed the business’s Chief Executive, Gerald Reichmann, is leaving.

This afternoon it has been confirmed that Reichmann is departing to take up a new external role in a different sector.

It had already been agreed with Reichmann that having assisted with getting British Steel into a stable position, and identifying a preferred buyer with whom the Official Receiver is now in exclusive talks, this would be the appropriate time for him to leave the business.

Reichmann was appointed CEO of British Steel in April of this year. He first joined the company in 2017 and previously served as its Chief Financial Officer (CFO) and Deputy CEO.

British Steel owns Scunthorpe steel works where 3,000 staff are based and it employs another 800 people on Teesside. It also has a Rotherham site. The business was put into compulsory liquidation in May after rescue talks with the Government failed to secure a deal.

The company was transferred to the Official Receiver because British Steel, its shareholders and the Government could or would not back the business.

But a tentative deal was reached last month to rescue British Steel from insolvency.

A Turkish military pension fund says it wants to take over the company, which employs 5,000 people, by the end of this year. The fund is called Oyak and it has an investment arm known as Ataer Holdings.

Ataer has confirmed that Reichmann’s resignation does not change its interest in British Steel.

A spokesman for the Official Receiver said: “We are assisting the preferred bidder for British Steel to complete their due diligence and confirm its sale. The departure of the Chief Executive does not impact upon this process.”

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