The Official Receiver is now in charge of the company following a breakdown in financing talks between the government and owners Greybull Capital.
British Steel is continuing to trade and supply construction industry customers.
A Statement from the Official Receiver said: “The company in liquidation is continuing to trade and supply its customers while I consider options for the business.
“Staff have been paid and will continue to be employed.
“The court also appointed Special Managers to assist me with my work and they are engaging with staff and their representatives to keep them informed, as well as contacting British Steel’s customers.”
Hunter Kelly, Sam Woodward and Alan Hudson of EY have been appointed to act as Special Managers.
They are in the process of contacting the company’s customers to keep them informed about the progress of the liquidation and talking to creditors who have supplied goods and services.
Business Secretary Greg Clark said: “This will be a deeply worrying time for the thousands of dedicated British Steel workers, those in the supply chain and local communities.
“In the days and weeks ahead, I will be working with the Official Receiver and a British Steel support group of management, trade unions, companies in the supply chain and local communities, to pursue remorselessly every possible step to secure the future of the valuable operations in sites at Scunthorpe, Skinningrove and on Teesside.”