LDV’s directors have applied for the company to go into administration after the company was unable to secure the investment required for the business.
All staff at LDV were written to this morning by Evgeniy Vereshchagin, LDV’s chief executive officer. He said: “I have to write to you today to notify you that despite all our efforts over the past few months, we have so far been unable to secure the investment required for the business.
“We are still working with potential overseas investors who want to keep production in Birmingham, but they like many people at this time are finding it difficult to secure the necessary funds.”
LDV’s application for administration will be processed on May 6.
Both hourly paid and staff have been paid up to the end of last week and at this point, LDV is unable to confirm any further payments. This means dealers are still waiting to see if they will be paid for warranty work.
Only the senior management team will report for work until further notice and all employees have been requested to leave the Birmingham factory site and await further information at home.