LDV applies for administration
British van maker LDV has applied for administration after running out of money.
Birmingham-based van manufacturer LDV has announced it has applied for administration in a letter to employees.
The letter states that only the senior management team will continue to work while all other members of staff at the van makers have been sent home upon receipt of the letter. LDV employs approximately 800 workers in its factory and around 1,200 people in dealerships.
Employees have been paid up until the end of last week but the company is unable to confirm any further payments.
LDV has been hit by poor demand in light of the credit crunch and has been looking for investment to stay afloat. The company has been trying to secure funding for the past few months and has stated that it has been working with potential overseas investors but none have proved fruitful.
Evgeniy Vereshchagin, CEO of LDV, said in the letter: “During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely.”
However, the firm was keen to add that LDV was not yet in administration and would continue to look for funding until 6 May when the administration application would be processed.
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I’ve just had my van serviced at http://www.serviceavan.com/ldv-van-service.html Are parts still going to be available?
April 29th, 2009 at 1:09 pmHi Emily - What was the outcome? Did the employees lose their jobs? Did LDV close due to the credit crunch or did they survive? We currently have a few LDV vans ourselves.
October 21st, 2009 at 10:18 amUnfortunately, most of the LDV staff were made redundant in June. Only 34 staff remain working at LDV.
LDV’s assets were recently sold to a vehicle engineering company called Eco Concept.
October 21st, 2009 at 10:21 amHi Emily - That’s bad news for the workers, i hope they found suitable employment elsewhere. It’s such a shame that companies like LDV have gone under due to this crisis in the UK.
I hope Eco Concept have better success.
October 21st, 2009 at 10:48 am