Collapsed steel firm Aartee Bright Bar's site in Dudley to close with redundancies
Forty-five redundancies have been announced at a hot-rolled steel business in Dudley, as part of administrators' plans to acquire a bigger collapsed steel business.
Administrators for Aartee Bright Bar said the Dudley base is not part of the takeover, meaning it will be wound up with redundancies and the site's closure.
The majority of collapsed steel business Aartee Bright Bar will be bought by Barrett Steel in a £13 million rescue deal - but the firm's Dudley site will close.
It comes after the West Midlands-based company fell into administration in February.
But Barrett will take on the group's distribution business in:
Bolton
Newport
Southampton
its Bright Bar business operating out of Willenhall
and freehold and leasehold properties at the sites
Administrators Alvarez & Marsal said this will save 173 jobs.
Aartee Bright Bar is the UK's largest distributor of steel products, and was closely linked to metal tycoon Sanjeev Gupta and his GFG Alliance steel business.
Mr Gupta's GFG Alliance business, which runs Liberty Steel, failed in his bids to take control of the business after it fell into insolvency.
Michael Magnay, managing director at Alvarez & Marsal said:
"This substantial investment from Barrett Steel is a vote of confidence in the business and the wider UK steel industry.
"The companies' creditors will now receive a substantial dividend and will have the opportunity to trade with the new business going forward.
"We are grateful to the employees and creditors for their support and understanding during this process, and to Barrett Steel for its commitment to the deal."
Marcus Tyldsley, chief financial officer at Barrett Steel, said:
"We're delighted to share that we're acquiring a new business as part of our ongoing expansion strategy.
"Our focus is on delivering exceptional service to our customers, and we're confident that this acquisition will help us achieve that goal.
"As new owners, we'll prioritise the safety and wellbeing of our employees, and work collaboratively with our new team to bring fresh ideas and perspectives to the table.
"We're excited to welcome our new colleagues to the Barrett Steel family and look forward to a successful future together."