LDV heads for administration

Writing on the company’s blog site, CEO Evgeniy Vereshchagin said the company had been in contact with workers’ representatives and had written letters to all employees to communicate a change in the company’s position. Vereshchagin went on: “To ensure that the key points of this letter reach employees first, before they are covered in the media, we have summarised the contents of the letter here on the blog.” In the letter, he wrote that despite all LDV’s efforts over the past few months, it had so far been unable to secure the investment required for the business. The letter continued: “During the past few weeks, the global economic crisis has forced us to operate in exceptional conditions and we cannot continue in this position without funding indefinitely. “We are still working with potential overseas investors who want to keep production in Birmingham, but they like many people at this time are finding it difficult to secure the necessary funds. “We must now inform you that the deterioration in the position of the business has forced the directors to apply for administration. I must stress that this does not mean the business is in administration yet. Our application will be processed on 6 May and we still have until that time to secure funding for our plans. “The effect of this change in position to your payments is as follows: Both hourly paid and staff have been paid up to the end of last week and at his point, the company is unable to confirm any further payments. “As a result of this, only the senior management team will report for work until further notice and all employees are requested to leave the site after this briefing and await further information at home. ”I want to thank you for your support to date and assure you that we will continue to fight to secure the funding and valuable jobs here at LDV up until the final deadline.” Following the announcement, comments on the blog site included: “Sad day, good luck to all employees,” from one of the company’s dealer network and a witty and wistful: “So long, farewell, auf wiedersehen, adieu,” from a Birmingham site employee.