Arrival, a UK-based startup planned to build electric vans for sale around the world, has filed bankruptcy protection without making any sale.
In a press release, the company announced that its British arm was entering administration-similar to bankruptcy protection in the United States-a week after it was kicked out of the Nasdaq stock exchange for failing to file its 2022 annual accounts and meeting the index's "continued listing standards."
Simon Edel, Alan Hudson, and Sam Woodward from the accounting firm EY-Parthenon will be tasked with overseeing the company's administration process to explore selling the company for parts.
"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 of Arrival UK Ltd and Arrival Automotive UK Limited, both subsidiaries of Arrival.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 release read.
What Led to Arrival's Bankruptcy?
The Banbury-based auto company, founded by Russian billionaire and former government minister Denis Sverdlov in 2015, first launched on the Nasdaq stock market in the U.S. in 2021. At the time, Arrival had a valuation of £9 billion ($13 billion), which was considered the biggest ever initial stock market listing for a U.K. tech company, per BBC News.
Arrival received investments from Hyundai and BlackRock. It also received orders for 10,000 electric vehicles from the United Parcel Services (UPS). However, the company struggled to get its EV designs into production. Its Banbury facility also caught on fire while one of its vans was being demonstrated in November 2022.
Arrival attempted to restructure last year, laying off nearly 50% of its 800-strong workforce and switching production from the UK to North Carolina. However, the company still struggled to raise the money it needed.
Since its public listing in 2021, Arrival's shares have declined 99%, according to Fortune. This puts the company's market valuation at $2.76 billion. At least 170 workers in the company's U.K. branch are expected to lose their jobs following the bankruptcy filing.
