Steel jobs at risk as Sheffield company goes into administration

Kiveton Park Steel has been placed into administration due to “unsustainable pressure” on cash flow due to a “sharp deterioration” within the specialist steel market, a statement from its administrators said.

Founded in 1922 and in continuous family ownership, the company, which manufactures bright engineering steel bar and wire for products in the automotive, aircraft, cold forming and machined parts industries, was last year included in The Yorkshire Post’s list of the region’s fastest-growing companies - Yorkshire Fastest 50 2014.

Despite exploring “a number of options”, including a solvent restructuring of the business, which was prevented “due to its severe cash-flow pressures”, directors were left with no viable option but to place the company into administration, the statement said.

Phil Pierce and Ben Woolrych, partners of FRP Advisory have been appointed as joint administrators.

The business, which has 120 staff, is seeking to fulfil existing customer orders through the administration while the joint administrators market the business for sale.

Mr Pierce said: “The steel business continues to go through some tough times and it is unfortunate that a Yorkshire-based business with nearly 100 years of trading should be the latest to feel the squeeze. As joint administrators we will be focusing on delivering Kiveton Park’s existing customer orders where possible, whilst constantly reviewing the financial position with a view to establishing a long term solution for the business in the interests of all the creditors.”