Press Report : 4,000 jobs at risk as LDV enters administration

Jon Griffin, Birmingham Post, 8th June, 2009

LDV today collapsed into administration following a six-month production standstill – putting 4,000 UK jobs at risk. An application by the Directors of the Birmingham van maker for administration was granted at Birmingham County Court by His Honour Judge Purle, QC.

The courtroom move effectively leaves the future of the Washwood Heath factory and 4,000 UK jobs in the hands of Administrators, with waves of redundancies likely. The hearing was called following last week’s decision by Malaysian group Weststar to call off takeover talks because of problems over funding.

The factory has been mothballed since December with no vans built and workers on half pay following a huge slump in the UK commercial vehicle market.  Russian owner GAZ Group announced in February that it was looking to sell the factory but attempts at a management buyout and a takeover by Weststar have failed to materialise.

I am satisfied that administration is the appropriate course. There is likely to be a better prospect of an enhanced return for creditors via the administration route rather than the insolvency route.” His Honour Judge Purle, QC.

Judge Purle, accepting the request from LDV Directors for  administration, said: “I am satisfied that administration is the appropriate course. There is likely to be a better prospect of an enhanced return for creditors via the administration route rather than the insolvency route.”

Brian Rawlings, the Solicitor for the Directors of LDV, said: “They have tried very hard not to go into insolvency but sadly the time is now up.”

Guy Jones, LDV’s PR and Marketing Director, said after the hearing that thousands of UK jobs were now at risk with LDV at the mercy of the administrators. “We now hope that any possible buyer recognises the potential of LDV. There is still opportunity for a bright future for LDV but we must now hand control of the business over to the administrators.

“There is still hope in the administration process of finding a buyer that takes the business as a going concern. It could potentially be a world leader and could secure thousands of jobs in the UK. We have done everything humanly possible but obviously there are thousands of  jobs at risk.”

Mr Jones attacked the Government for failing to do enough to help British  industry: “I do not think that the Government has done enough. I think that more needs to  be done for British industry to make sure that these jobs are not lost for ever.”

I do not think that the Government has done enough. I think that more needs to  be done for British industry to make sure that these jobs are not lost for ever.” Guy Jones, PR and Marketing Director, LDV Group Limited

He said that lack of access to working capital for industry remained a “key issue” despite the Government’s pledge to help companies fight the downturn.

“I would like to thank our employees, dealers, suppliers, business partners and  Liam Byrne, MP, for their support in trying to secure a future for this business.”

The administration orders sees LDV and subsidiary company Birmingham Pressings Ltd enter the administration process.

Posted in: AROnline News, LDV
Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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  1. norfolkbilly says:

    A sad business all round. However, what about thanking me/us – yes, the customers! We have supported LDV with our cash over the years and not one word on any message boards of thanks for the loyality. Perhaps, in all the fog, LDV lost sight of its individual buyers.

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