USA / UK – The curtains have finally come down on troubled commercial vehicle manufacturer, Arrival Ltd of London, UK, which finally collapsed into administration yesterday (5 February 2024). Valued at GBP 9 billion just three years ago, it has been a tumultuous time for the OEM, whose shares were delisted from the Nasdaq* stock market on January 30, 2024, due to non-compliance. The company failed to launch its much-hyped electric van even after raising USD 283 million in a second SPAC deal in July last year, to help with its cash flow issues. With 400 jobs at risk, the business will now look to sell off any and every asset it can, in order to pay back its creditors.
Accounting firm, Ernst & Young (EY) is now tasked with handling the administration process. In a statement, EY said: "The group's liquidity position has been impacted by a challenging market and macroeconomic conditions resulting in delays getting the group's products to market. As such, the joint administrators are now exploring options for the sale of the business and assets of the companies, including its electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors.”
With major investors including Hyundai, Kia and BlackRock investment group, coupled with thousands of vehicle orders from the likes of UPS, one wonders, is this the last we hear from this once-promising UK OEM?
*The Nasdaq Stock Market, or simply Nasdaq, is the second-largest stock exchange in the world for investors looking to buy and sell shares of stock. Nasdaq was initially an acronym, NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations.