Troubled times for Arrival as first it shares were suspended from the NASDAQ and now it has called in the administrators at its two UK businesses.
In a statement on the company website, Arrival has announed:
Arrival (“Arrival”) today announced that Simon Edel, Alan Hudson and Sam Woodward of EY-Parthenon’s Turnaround and Restructuring Strategy team were appointed as joint administrators (the “Administrators”) of Arrival UK Ltd and Arrival Automotive UK Limited (the “Companies”), both subsidiaries of Arrival. All of Arrival’s other subsidiaries will continue their activities as usual outside of the administration process. The Administrators are now exploring options for the sale of the business and assets of the Companies, including the electric vehicle platform, software, intellectual property and R&D assets, for the benefit of creditors.
The collapse puts 172 UK jobs at risk and casts a major shadow over the future production of its electric vans.
Founded in 2015 by Russian billionaire Denis Sverdlov, Arrival had sought to build vehicles using localised micro-factories, a manufacturing process that uses cell-based robotic assembly instead of a traditional automotive production line. The company quickly secured interest from some of the major UK fleet operators as the concept vehicles were revealed. However, in October 2022, the company announced it was pulling back from the UK, as it opened a micro-factory in North Carolina, chasing the lucrative North American market.
Back in January, the group company (a joint stock company governed by Luxembourg law) announced it had received notification it was being delisted from the NASDAQ with effect from 30 January 2024. With the appointment of administrators at the UK-based business, the future looks bleak for the electric van builder.