Aartee Bright Bar, based in the West Midlands and with 250 employees, applied to Alvarez & Marsal this week to handle insolvency proceedings.
Aartee is a supplier of structural steel products to Liberty Steel, which is part of an industrial conglomerate led by Sanjeev Gupta.
Mr. Gupta is reported to have close ties to Ravi Trehan, founder of Aartee, while Greensill Capital, a controversial supply chain finance group that itself went bankrupt in 2021 financed a number of deals between the two.
Michael Magnay, joint administrator at A&M, said in a statement: “Like many businesses in the sector, Aartree Bright Bar has faced significant headwinds as a result of the difficult economic environment and price fluctuations on steel.
A source in the steel industry said on Tuesday that Liberty Steel would be the clear buyer of Aartee Bright Bar's out-of-administration assets. management.
A spokesman for Liberty Steel declined to comment, though a source familiar with the matter said the company would "look at how that could help."
Aartee, who also has offices in Lancashire and Wales, is a manufacturer, supplier and distributor of steel products.
