The spectacular rise and precipitous fall of Sanjeev Gupta's industrial empire, GFG Alliance, reads like a Shakespearean tragedy set in the heart of Britain's steel country. What began as an ambitious venture to rescue the UK's ailing steel assets has culminated in a full-blown financial crisis, leaving a trail of uncertainty from South Yorkshire to Australia.
The House of Cards Built on Debt
For years, Gupta was hailed as the 'saviour of steel', a modern-day industrialist snapping up struggling mills from Scotland to Wales. His company, GFG Alliance, and its flagship Liberty Steel operation, became a major employer in traditional industrial heartlands. However, this expansion was fuelled not by traditional profitability, but by a complex web of debt, primarily financed through the now-infamous supply chain finance firm, Greensill Capital.
The Greensill Catalyst for Collapse
The entire edifice began to crumble in March 2021 when Greensill Capital filed for administration. This sudden event severed GFG's primary financial lifeline, exposing a critically fragile business model. Overnight, the group was thrust into a desperate fight for survival, facing intense scrutiny from regulators and creditors worldwide.
A Global Empire Unravels
The fallout has been severe and widespread. Key assets within the GFG portfolio have been forced into administration. The UK's Serious Fraud Office (SFO) launched a formal investigation into GFG Alliance, including its financing arrangements with Greensill, adding a layer of legal peril to the financial chaos. From the Whyalla steelworks in Australia to the Liberty Steel plants in England, the future of thousands of jobs hangs in the balance.
What Next for UK Steel?
The unravelling of Gupta's empire poses profound questions for the future of British manufacturing and the stewardship of its foundational industries. It serves as a stark warning about the dangers of leveraged growth and the vulnerabilities it creates. The communities that once celebrated Gupta as a hero now face an anxious wait to see what remnants of his empire can be salvaged.
The story of Sanjeev Gupta is far from over, but its current chapter stands as one of the most dramatic corporate downfalls in recent British history.
