LONDON - British Steel's owner Greybull Capital said on Wednesday it had worked hard to keep Britain's second largest steel producer alive but that the challenges of Brexit had proven insurmountable.

"Having rescued the business from closure over three years ago, we have worked hard to bring this important company back on its feet," Greybull Capital said.

"The Workforce, the Trade Unions and the Management team, have worked closely together in their determination to strengthen the business, however, the additional blows dealt by Brexit-related issues have proven insurmountable."

Greybull, which specialises in turning around distressed businesses, paid former owners Tata Steel a nominal one pound in 2016 for the loss-making company which they renamed British Steel.

(Reporting by Guy Faulconbridge; editing by Costas Pitas) ((; 07825218698;))