Unions fear hundreds of jobs in Rotherham and Stocksbridge are under threat as HMRC issues winding up petition against Liberty Steel
The petition is part of discussions over repayments to creditors, which unions fear could force Liberty into insolvency.
A spokesperson for the Community, Unite and GMB unions said: “This action by HMRC threatens thousands of jobs and is a devastating blow to our members and their families.
“Liberty Steel is a strategically important business, crucial to delivering net zero, and under no circumstances can our plants be allowed to close.
“The trade unions call on GFG and HMRC to get back round the table and hammer out a deal that provides space for the company to refinance.
“The best route to protect jobs and repay HMRC and other creditors would be to enable the business to continue to trade.
“Our experts have advised us that with the right framework of support Liberty Steel can have a sustainable future.
“The Government has an important role to play in providing that framework and must take urgent action to address our unaffordable energy prices.
“GFG is the owner and we hold them accountable for their actions, but as we have always said, Government must be ready to step in should that be required.”
An HMRC spokesperson said: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”