British Steel, the U.K.s second-largest steel producer, was put into administration today, with the loss of up to 5,000 jobs.
A further 20,000 jobs along the companys supply chain are also at risk, the BBC reported.
British Steel had been trying to secure £75 million in emergency funding to help it address what it called “Brexit-related issues.” It also faced a weaker pound and heightened trade tensions between the United States and China. Orders from European customers have slumped, according to media reports.
In a statement, Business Secretary Greg Clark said the government had worked “tirelessly” to secure a solution for British Steel, but “can only act within the law, which requires any financial support to a steel company to be on a commercial basis.”
“I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made,” he added.