British Steel has been ordered into compulsory liquidation after talks with the government failed to secure a bailout, Britain's Insolvency Service said Wednesday.
The move threatens some 5,000 workers employed by the company, with another 20,000 jobs in the supply chain.
The company has asked for a package of support to tackle issues related to Britain's pending departure from the European Union.
"The immediate priority following my appointment as liquidator of British Steel is to continue safe operation of the site," said David Chapman, the official receiver, referring to the Scunthorpe plant in northeast England.
"I appreciate that this a difficult time for the company's employees and I want to thank them for their ongoing cooperation."
"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."