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So it has happened. I blogged on the LDV administration sometime ago, but only today has the troubled firm passed into administration. The company's website notes:
"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 now 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."
It is worth a visit to the LDV blog to see some of the comments made by employees and dealers. The following are particularly noteworthy:
"Are you like us ?? we have been supporting LDV for in excess of 20 Years . We have survived " 2 " previous periods of Administration , and are yet again faced with more uncertainty ......."Administration is best for LDV, future LDV with about 30-50 skill workers to build Electric Van(EV) on committed order would ensure a better future than paying 850 workers to sit at home. Let's commercial sense previal as the electric van with a life of 100 miles is still not the ideal solution as it is too expensive for a milk float and too risky for general delivery run. I would not buy EV tomorrow for our courier business as 100 miles battery life is not cost effective."
The BBC and others are reporting the issue with a focus on the employment ramifications. See here.
"BPIR is an excellent series, of interest to both corporate and personal insolvency lawyers,...