LDV has been forced to reapply for administration after Malaysian bidder Westar pulled out from negotiations to acquire the business.
In a statement on LDVs blog, the company said: "The directors of LDV Group have been forced to reapply for administration to protect the assets of the business.
“This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available.”
The application for administration will be in court today and LDV has said further information will be made available as soon as “the facts are made clear".
Business minister Ian Pearson said the Government was disappointed that the deal had fallen through.
He said: “This is clearly a worrying time for the workforce. We are ready to offer support to the workers through Advantage West Midlands and the Job Centre Rapid Response Team.
"We gave LDV a breathing space, a bridge to the future but in the event, unfortunately, Weststar was unable to cross that bridge.”
LDV dealers are still waiting to be paid for warranty work and will now be waiting to hear how likley it is that the franchise will be continuing into the future.