British Steel is reportedly at risk of collapsing into administration this week, as it looks to the government for a potential rescue.

The UK’s second largest steel maker is hoping to secure £75 million from the government to avoid bankruptcy.

The company has roughly 5,000 employees, predominately based in its Scunthorpe plant in North Lincolnshire.

It is now awaiting a decision from the government, otherwise it is understood that administrators may be called in as soon as Wednesday.

Should this happen, EY is expected to handle the wind down.

British Steel already received a £100 million loan from the government back in April to cover a EU carbon bill.

In a statement, the Department for Business, Energy and Industrial Strategy commented: “As the business department, we are in regular conversation with a wide range of companies.”

If British Steel were to collapse it would prove a massive blow to the British steel industry, which is a central part of the UK’s manufacturing sector.

A bad day for British businesses?

Meanwhile in the retail and leisure sector, it was revealed today that Jamie Oliver’s restaurant chain is appointing administrators after failing to locate a buyer.

The collapse of Oliver’s 25 restaurant locations places 1,000 jobs at risk.