Nearly 200 jobs at risk as UK arm of electric vehicle company Arrival falls into administration
The British arm of electric car company Arrival has gone bankrupt, putting almost 200 jobs at risk.
Administrators at audit group EY said they plan to sell the operations and assets of the two British units.
The companies – Arrival UK Ltd and Arrival Automotive Limited – employed a total of 172 staff.
Of these, 39 employees have already been dismissed. The remaining 133 employees have been retained to assist with a potential sale.
Arrival, which has 400 employees worldwide, was delisted from the Nasdaq stock exchange in New York last week after failing to file its 2022 financial statements.
Administrators at audit group EY said they want to sell electric vehicle maker Arrival and the assets of its two UK units
The electric vehicle (EV) startup has struggled over the past year due to higher interest rates and production costs, as well as tight funding.
The company warned in November 2022 that it was at risk of running out of money, but failed to raise additional funds.
Last year, Arrival refocused its activities on the US and the production of an electric van that will be sold there.
An EY spokesperson said yesterday: ‘(Arrival’s) liquidity position has been impacted by challenging market and macroeconomic conditions, resulting in delays in bringing the group’s products to market.
As such, the joint administrators are now exploring options for the sale of the companies’ businesses and assets, including their electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors.”
Other EV companies, including battery maker Proterra and electric truck maker Volta, have gone bankrupt in recent months.