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UK arm of electric van maker Arrival has been placed in administration

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UK arm of electric van maker Arrival  has been placed in administration.
The UK arm of electric van maker Arrival has been placed in administration.

The UK-based operations of the electric van maker Arrival – a firm once championed by former Prime Minister Boris Johnson – have been placed in administration.

The company announced that Simon Edel, Alan Hudson and Sam Woodward of EY-Parthenon’s Turnaround and Restructuring Strategy team have been appointed as joint administrators of Arrival UK Ltd and Arrival Automotive UK Limited (the “Companies”), both subsidiaries of Arrival.

All of Arrival’s other subsidiaries will continue their activities as usual outside of the administration process.

Arrival planned to build innovative electric vans for sale around the world.
The Banbury-based business was worth £9 billion just three years ago
It had been described as the future of the UK automotive industry but struggled to get its designs produced.

Between them, Arrival UK Ltd and Arrival Automotive employed 172 people. Nearly 40 have been made redundant, while others are being retained to assist with the sale of the business and assets.

Arrival was founded in the UK by the Russian billionaire and former government minister Denis Sverdlov in 2015.

It intended to use simple manufacturing processes to build electric vans, buses and taxis more cheaply. It planned to produce them in so-called “micro-factories”, which would be much smaller than traditional manufacturing plants and could be set up relatively easily.

It was launched on the Nasdaq stock market in the United States in 2021 and briefly had a valuation of $13 billion (£9 billion), making it the biggest-ever initial stock market listing for a UK tech company at the time.

However, despite already having received orders for 10,000 vehicles from the US distribution giant UPS and having investments from both UPS and Hyundai, it struggled to get its designs into production.

Setbacks included a fire at its facility in Banbury while one of its vans was being demonstrated in November 2022.

Early last year, Arrival said it would cut its 800-strong workforce in half and switch production from the UK to North Carolina in the United States. It still employs some 400 people globally.

However, the company continued to struggle to raise the money it needed.

At the end of January, the company said it had received a letter from The Nasdaq Stock Market notifying it that its shares will be suspended from trading on the Nasdaq from January 30, 2024. It has also received notification that its shares will be removed from the index.

The administrators are now exploring options for the sale of the business and assets of the Companies, including the electric vehicle platform, software, intellectual property and R&D assets, for the benefit of creditors.

A statement from the administrators said: “The group’s liquidity position has been impacted by a challenging market and macroeconomic conditions resulting in delays getting the group’s products to market.

“As such, the joint administrators are now exploring options for the sale of the business and assets of the Companies”.



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