Nearly 6,000 jobs are at risk after UK van maker LDV reapplied for administration following a failed rescue, it has emerged.
Weststar, a Malaysian vehicle maker, has pulled out of the planned takeover after admitting it had not been able to find financial backers. The Birmingham-based LDV employs 850 staff directly, and a further 1,200 in dealerships, but a further 5,000 jobs are thought to be at risk through its suppliers and manufacturers.
In a statement, Weststar said: “We have explored all known avenues to access this funding, including assistance from the UK government, but without this in place, it will not be possible to deliver the plan to secure jobs in the UK.”
Last month, Weststar was given a £5m bridging loan by the government to keep LDV afloat while it sought financial backers.
Ian Pearson, the business minister, said he had hoped the loan would be enough.
“We are disappointed with the news that, despite the bridging facility made available by the government, Weststar has been unable to proceed with its purchase of LDV,” he said.
Joe Morgan, the regional secretary of the GMB union, criticised the government for not doing enough to help the sale.
“It appears as though the government has thrown the towel in, as all it is saying is that it is mobilising the job centre people to help,” he said.
“GMB will be seeking immediate talks with the management of LDV, with the government and with Weststar to see what the options for the future are.”