Birmingham-based van company LDV has been placed into administration by a court following failed attempts to save the ailing firm.

Van firm LDV has been placed into administration by a court, threatening thousands of jobs across the UK.

All attempts made to sell the Birmingham-based company have fallen through and a court decided today (8 June) to place LDV into administration.

Talks with potential buyer Weststar failed at the last minute and left the van company in turmoil. The LDV management team was worried that any buyers would move the manufacturing process overseas, costing jobs at the Washwood Heath site.

The LDV management team has been working tirelessly over the last few weeks to try and secure funding for the future of LDV in the UK and had been campaigning to save the ailing company.

LDV had hoped for a loan of £60 million to enable the company to refinance and transform the industry.

The firm claimed that the cost of supporting LDV was small compared with letting it fail. According to the company, the cost to the Treasury alone will be up to £53m in unemployment benefits and lost taxes.

The management team called for the government “to secure this vital piece of industry in the UK and thousands of jobs which otherwise will be lost forever” but was unable to obtain the required funding from the banking system.

In a statement on the LDV blog, Guy Jones, Managing Director, thanked employees, dealers, suppliers, business partners and Liam Byrne MP for their support and went on to say that the proposed plan would have supported the vision of the British government for the industry.