LDV Job Fears As Company Enters Administration

Struggling van maker LDV is to apply for administration, leading to fears hundreds of workers will lose their jobs.

Production halted at the Birmingham-based plant in mid-December, and most of the company's 850 production staff were sent home on a deal which allowed them full pay for one month.

A planned management buyout failed to materialise and LDV has been trying to raise money from overseas investors for the past few months.

The company's Chief Executive Evgeniy Vereshchagin told staff: "Despite all our efforts over the past few months, we have so far been unable to secure the investment required for the business.

"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.

"We must now inform you that the deterioration in the position of the business has forced the directors to apply for administration."

The application will be processed on May 6 and the company said it has until that time to secure funding for its plans.

Earlier, Erik Eberhardson, the Chairman of LDV's Russian owner Gaz, said he believed LDV could be saved and the management buyout was the best option.


Related UK National News Stories
Click here for the latest headlines.

08 June 2009
Hundreds Of Workers Lose Jobs As LDV Goes Into Administration
Birmingham-based van-maker LDV has gone into administration, leaving 850 people redundant, administrators have said. The news came just hours after the stricken firm went into administration after the collapse of a rescue bid.
05 August 2015
Claims Management Company Fined For Nuisance Calls
A claims management company has been fined more than £200,000 under new claims management regulation powers.
08 September 2010
Jobs Under Threat As Housing Firm Faces Collapse
Thousands of jobs are at risk with the news that social housing firm Connaught is facing administration. The company is expected to announce that it is being put in administration later today.
13 March 2015
Staff At North Wales Bus Company Find Company Ceases Overnight
Employees of Western Greyhound in Cornwall have arrived at work this morning to find the company has ceased trading. According to a report by the BBC, around 40 staff arrived for work on Friday morning and found the depot closed.
23 October 2006
Two arrested in investigation into teenager's abduction
Police investigating the abduction of a teenage girl from a street in Wrexham on Friday have arrested two people, according to reports. It is understood that a man has been arrested and charged with perverting the course of justice, while a woman is believed to be in police custody on suspicion of assisting an offender.