British electric vehicle maker Arrival has gone into administration, putting approximately 400 jobs in jeopardy.
The company was previously listed on the New York Stock Exchange and operated two manufacturing facilities in Oxfordshire.
It cited severe economic challenges and delays in launching its prototype vehicles as key factors behind its difficulties.
EY has been appointed as the administrator to oversee the process.
EY’s statement highlighted the adverse effects of market conditions and macroeconomic factors on Arrival’s liquidity, leading to significant delays in product launches.
The focus now shifts to exploring the sale of Arrival’s assets, including its electric vehicle platforms, software, intellectual property, and research and development assets, aiming to benefit creditors.
Arrival was valued at $13 billion in 2021
Founded in London in 2015, Arrival was celebrated by the UK government as a promising tech entity.
The company’s valuation soared to over $13 billion following its IPO in 2021, making it one of the UK’s most valuable tech unicorns.
Founder Denis Sverdlov’s share was valued at around $7 billion at its peak.
Early investors included automotive giants Hyundai and Kia.
However, Arrival faced multiple hurdles, including delays and cancellations in its electric vehicle market entry.
It led to a dramatic 98 percent decline in share value over the last year.
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This decline prompted the company to delist from the stock exchange last week due to postponed financial statement publications.
It originally planned to produce a diverse lineup of electric vehicles, including vans, taxis, cars, and buses.
Arrival announced a major workforce reduction of about 800 positions earlier in 2023.
This was part of a strategic move to reduce expenses and concentrate on developing electric vans for the US market.
EY invites potential buyers to express interest in acquiring the remaining Arrival assets.
