LDV jobs axed as rescue deal hopes are dashed

Jun 9 2009 by Iain Laing, The Journal

THE worst fears of workers at stricken van maker LDV have been realised with the axing of most of the 850 employees’ jobs.

The devastating news came hours after the Birmingham group went into administration after the collapse of a rescue attempt.

Rob Hunt, joint administrator and partner at PricewaterhouseCoopers, said: “Due to the lack of funding it has, regrettably, been necessary to make the majority of the workforce redundant and we will retain a skeleton workforce of around 40 people to maintain the site.”

Hopes for a last-ditch rescue of the firm were dashed after Malaysian company Weststar failed to raise funds to buy the business.

Mr Hunt said LDV’s financial difficulties, which culminated in the halting of production last December, had been widely publicised in recent months. “Last week, Weststar withdrew from the proposed purchase which left the directors with little option other than to reapply for administration.

“Our priority is to ensure that those employees made redundant, many of whom have been laid off since December, are assisted in processing their claims with immediate effect. Over the coming days we will review all options and seek a buyer for the business and assets.

“We have already been approached by three parties wishing to engage with us, and we will try to ensure that a solution is found to provide a structure to take the business forward.”