Hundreds of jobs to go as LDV goes into administration
Birmingham-based van-maker LDV goes into administration, threatening up to 2,000 UK jobs
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Monday, 08, Jun 2009 11:08
Birmingham-based van-maker LDV has gone into administration, threatening up to 2,000 UK jobs.
The news comes after the government rejected a last-minute plea for a £60 million loan to save the company, previously known as Leyland Daf Vans, from going into administration.
Malaysia's Weststar had been due to take over the group when the government announced a £5 million bridging loan, but the firm unexpectedly pulled out last week.
At a brief hearing at Birmingham county court this morning it was announced that LDV, owned by Russian utility giant Gaz, was going into administration, which auditor PricewaterhouseCoopers taking control.
LDV employs 850 people at its Washwood Heath plant, while more than 1,200 are employed through dealerships.
A statement from LDV said: "We now hope that any possible buyers recognise the potential of the investment already made at LDV and what has been achieved in the last year to transform the future profitability of the business.
"There is still the opportunity of a bright future for LDV, however the management team must now hand control of the business over to the administrators and hope this can be achieved."