REDCAR, ENGLAND - SEPTEMBER 29:  Dawn breaks over the blast furnace at the SSI UK steel plant on September 29, 2015 in Redcar, England. Following the announcement that SSI UK are mothballing the plant and ceasing steel production 1700 jobs at the Teesside site have been lost.  (Photo by Ian Forsyth/Getty Images)
Ian Forsyth/Getty Images
REDCAR, ENGLAND - SEPTEMBER 29: Dawn breaks over the blast furnace at the SSI UK steel plant on September 29, 2015 in Redcar, England. Following the announcement that SSI UK are mothballing the plant and ceasing steel production 1700 jobs at the Teesside site have been lost. (Photo by Ian Forsyth/Getty Images)
Now playing
03:28
Can a free port save this steel community after Brexit?
A Brexit supporter wears the Union Jack colors on his face at Parliament Square in Westminster, London, Friday, March 29, 2019. Pro-Brexit demonstrators were gathering in central London on the day that Britain was originally scheduled to leave the European Union. British lawmakers will vote Friday on what Prime Minister Theresa May's government described as the "last chance to vote for Brexit." (AP Photo/ Frank Augstein)
Frank Augstein/AP
A Brexit supporter wears the Union Jack colors on his face at Parliament Square in Westminster, London, Friday, March 29, 2019. Pro-Brexit demonstrators were gathering in central London on the day that Britain was originally scheduled to leave the European Union. British lawmakers will vote Friday on what Prime Minister Theresa May's government described as the "last chance to vote for Brexit." (AP Photo/ Frank Augstein)
Now playing
01:12
What happens if there's a no-deal Brexit
Now playing
03:04
Brexit could create costly border delays
LONDON, ENGLAND - JULY 23: Newly elected British Prime Minister Boris Johnson speaks during the Conservative Leadership announcement at the QEII Centre on July 23, 2019 in London, England. After a month of hustings, campaigning and televised debates the members of the UK's Conservative and Unionist Party have voted for Boris Johnson to be their new leader and the country's new Prime Minister, replacing Theresa May. (Photo by Jeff J Mitchell/Getty Images)
Jeff J Mitchell/Getty Images
LONDON, ENGLAND - JULY 23: Newly elected British Prime Minister Boris Johnson speaks during the Conservative Leadership announcement at the QEII Centre on July 23, 2019 in London, England. After a month of hustings, campaigning and televised debates the members of the UK's Conservative and Unionist Party have voted for Boris Johnson to be their new leader and the country's new Prime Minister, replacing Theresa May. (Photo by Jeff J Mitchell/Getty Images)
Now playing
02:27
Worries over Boris Johnson and a 'no-deal' Brexit
Now playing
02:58
How DHL is preparing for Brexit
Now playing
01:59
Mondelez CEO: Brexit will add to costs
Pedestrians waling through Waterloo Bridge with the skyline of the City of London in the background on October 27, 2016. 
Britain's economy won a double boost on October 27 on news of faster-than-expected growth following its vote for Brexit and a pledge by Nissan to build new car models in the UK. Gross domestic product expanded by 0.5 percent in the third quarter, official data showed.
 / AFP / Daniel Leal-Olivas        (Photo credit should read DANIEL LEAL-OLIVAS/AFP/Getty Images)
DANIEL LEAL-OLIVAS/AFP/Getty Images
Pedestrians waling through Waterloo Bridge with the skyline of the City of London in the background on October 27, 2016. Britain's economy won a double boost on October 27 on news of faster-than-expected growth following its vote for Brexit and a pledge by Nissan to build new car models in the UK. Gross domestic product expanded by 0.5 percent in the third quarter, official data showed. / AFP / Daniel Leal-Olivas (Photo credit should read DANIEL LEAL-OLIVAS/AFP/Getty Images)
Now playing
02:13
Why Brexit uncertainty means companies plan for the worst
Pro-European Union demonstrators protest outside the Houses of Parliament against the first vote today on a bill to end Britain's membership of the EU on September 11, 2017. - MPs hold their first vote today on a bill to end Britain's membership of the EU, which ministers say will avoid a "chaotic" Brexit but has been condemned as an unprecedented power grab. (Photo by Tolga Akmen / Tolga Akmen / AFP)        (Photo credit should read TOLGA AKMEN/AFP/Getty Images)
TOLGA AKMEN/AFP/Getty Images
Pro-European Union demonstrators protest outside the Houses of Parliament against the first vote today on a bill to end Britain's membership of the EU on September 11, 2017. - MPs hold their first vote today on a bill to end Britain's membership of the EU, which ministers say will avoid a "chaotic" Brexit but has been condemned as an unprecedented power grab. (Photo by Tolga Akmen / Tolga Akmen / AFP) (Photo credit should read TOLGA AKMEN/AFP/Getty Images)
Now playing
02:20
Businesses growing concerned over no-deal Brexit
WEF
Now playing
00:53
Davos audience votes for second Brexit referendum
Now playing
02:54
Steel company caught between tariffs and Brexit
London CNN Business —  

Britain’s second biggest steel maker collapsed on Wednesday, putting about 5,000 jobs at the company directly at risk, and threatening another 20,000 at suppliers.

The company was seeking a government bailout, but talks ended without agreement. The High Court ordered the company into compulsory liquidation, according to the government’s Insolvency Service.

British Steel was reportedly seeking a government loan of £75 million ($95 million) to cover losses it suffered because orders from the European Union had evaporated due to the uncertainty surrounding Brexit.

“Unable to decipher the trading relationship the UK will have with its biggest market in just five months’ time, planning and decision making has become nightmarish in its complexity,” UK Steel, the industry’s trade association, said in a statement.

British Steel, which had already been granted a government loan of £120 million ($152 million) last year, was bought by investment firm Greybull Capital from India’s Tata Steel in 2016 for just £1.

The government said it has appointed EY to try to find a new owner for the company. British Steel will continue to operate and its workers will be paid while the search continues.

“Failure to find a buyer would be devastating to many areas which rely so strongly on this industry,” said Hannah Essex, co-executive director of the British Chambers of Commerce.

The GMB labor union said the UK government should have considered all options, including nationalization, in order to save the company.

“But they either don’t care or wouldn’t take off their ideological blinkers to save hard working people and communities,” said Tim Roache, GMB’s general secretary.

European steel makers have been under pressure because of cheap competition from China. The European Commission put anti-dumping measures on Chinese steel in 2017, and extended them in 2018 after an investigation showed the practice of flooding the market with steel priced below production cost was continuing

On top of that, steelmakers around the world were hit last year by tariffs imposed by the Trump administration. The tariffs have provided some relief to American steelmakers, but analysts say their future is also uncertain. Shares in major US steel producers have plummeted in the year since the tariffs were announced.

Jonathan Owens, supply chain and logistics expert at the University of Salford Business School, said that British Steel had been struggling in a very competitive market and that a new government loan may only have delayed the inevitable failure of the company.

British Steel produces more than 2.8 million tonnes of steel a year. It employs around 4,100 people at its sites in the United Kingdom, and 900 in other countries.

Trade unions warned Tuesday that 20,000 jobs in the supply chain would be at risk if the company collapsed.