An electric van maker once valued at £10bn has gone into administration

Arrival had previously signed agreements to supply vehicles to numerous companies, but was ultimately unable to sell a single completed model.

The British electric van maker, once valued at $13 billion (£10 billion), has gone into administration after spending $1.5 billion without selling the vehicle.

Oxfordshire-based Arrival has appointed administrators EY to find a buyer for the business, blaming a “challenging market”. and macroeconomic conditions.»

Arrival's 2021 Nasdaq float was the UK company's biggest ever, but shares fell 99.98% as it became clear the company was unable to service its debts.< /p>

“The group’s liquidity position was impacted by difficult market and macroeconomic conditions, which led to delays in bringing the group’s products to market,” the administrators said.

«As such, the joint administrators are now exploring options to sell the companies' businesses and assets, including electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors.»

Last week, Arrival said it would delisted from Nasdaq after failing to release financial news or hold annual meeting. The company defaulted on its debts despite efforts to cut costs due to repeated job cuts.

Before going public, Arrival received hundreds of millions in investment from companies such as BlackRock, BNP Paribas and Hyundai. Denis Sverdlov, the Russian businessman who founded the company, stepped down as CEO in 2022.

Denis Sverdlov stepped down as CEO director of Arrival less than two years after becoming a public company of the company.

The company had been looking for a potential sale or investment, but on Monday EY was appointed administrator of two of its UK units that own its key assets.

Arrival planned to produce electric vans and buses in small «microfactories» run by robots that would be cheaper to build than traditional car factories.

It has signed deals with delivery giant UPS to supply up to 10,000 vehicles, as well as a deal with Uber to produce vehicles specifically built for ride-hailing apps.

The company signed a deal last year. switched its plans to production in America this year in an attempt to benefit from Biden administration subsidies, although production never began.

As of last June, the company had more than $300 million in debt.

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A number of other electric vehicle companies that chased high U.S. listing bids during the market boom in 2020 and 2021, such as Lordstown Motors and Nikola, have also encountered difficulties.