The sale of collapsed EV manufacturer Arrival has been postponed. This decision comes as administrators and potential buyers engage in extensive discussions to finalise terms.
- Administrators have entered the due diligence phase after receiving non-binding offers from interested parties.
- A 12-month extension is sought to accommodate detailed negotiations and meet required sales process standards.
- Arrival’s debt exceeds £1bn, with notable creditors including AWS and Google Cloud.
- Despite the company’s collapse, administrators have reclaimed £2.8m in debts and sold £7.4m of non-core assets.
The negotiation process for selling the assets of the collapsed electric vehicle firm Arrival has encountered delays. Interested buyers are in dialogue with the administrators to reach a consensus on the terms of the sale. The process has moved into a due diligence phase, indicating that the administrators are engaging in thorough checks and verifications of the offers received. An extension of 12 months is being requested to allow this complex process to be carried out thoroughly.
In March, Arrival UK revealed it owed over £1bn, impacting stakeholders such as AWS, Google Cloud, and the coffee company Grind. The substantial financial obligations arose from unpaid taxes, wages, and supplier debts, among others. Since entering administration in February 2024, the administrators have taken steps to mitigate the financial damage. Through asset sales and debt recovery, £7.4m has been raised from non-core assets while £2.8m has been reclaimed from debts owed.
Despite the collapse, operational proceedings continue at a reduced capacity. The workforce has seen a reduction from 133 employees at the time of administration to 90, reflecting the company’s downward adjustment in operations. In the wider context of Arrival’s decline, its US, German, and Spanish entities are also undergoing insolvency procedures. This reflects the extensive challenges the company faces globally, following its ambitious yet ultimately untenable business model centred on innovating production through robotic micro-factories.
Founded in 2015, Arrival aimed to disrupt the EV production landscape. However, after its 2021 public offering, the company suffered repeated losses, leading to its financial troubles. The administrators’ current efforts are focused on negotiating terms beneficial to both creditors and potential buyers, hoping to alleviate some of the severe financial repercussions that have ensued.
The ongoing negotiations reflect the complex and challenging nature of revitalising Arrival amid its financial and operational setbacks.
