As predicted, earlier today a court placed ailing Birmingham-based van manufacturer LDV in the hands of the administrators and the future of the company looks terminally bleak.
Russian owner Gaz has run out of financial options to rescue LDV and according to a representative of the administrators, PriceWaterhouseCoopers, the majority of the 850-strong workforce will be made redundant this afternoon.
A final statement from the LDV management said:
“Firstly the management team want to thank our employees, dealers, suppliers, business partners and Liam Byrne MP for their support, enabling us to try to secure a future for this important British business.
Over the past year, the new management team at LDV have restructured the business for profitability, creating an exciting future with the potential to be the first manufacturer able to offer both electric and diesel light commercial vehicles. This is a plan that clearly supports the vision of the British government for the industry.
The management team have worked exceptionally hard to deliver this plan, but despite every effort made around the globe, have been unable to obtain the required funding from the banking system. Like much of industry, it is access to working capital that remains an issue which will go on to cause further job losses if not addressed.
We now hope that any possible buyers recognise the potential of the investment already made at LDV and what has been achieved in the last year to transform the future profitability of the business. There is still the opportunity of a bright future for LDV, however the management team must now hand control of the business over to the administrators and hope this can be achieved in this process.
All further communication about LDV will now come from the administrators.”