The UK arm of electric vehicle maker Arrival has entered administration just three years after being valued at more than £9bn.
The company has appointed consultancy firm EY as administrator to oversee the sale of the business and its assets.
The collapse puts 172 UK jobs at risk and cast uncertainty over the future production of its electric vans.
Founded in 2015 by Russian billionaire Denis Sverdlov, Arrival had sought to build vehicles using localised micro-factories, a manufacturing process that uses cell-based robotic assembly instead of a traditional automotive production line.
The idea was to set these production sites up quickly in warehouses to meet demand in the area.
But the Banbury-based business struggled to get its designs into production and losses mounted.
Arrival completed a listing on New York’s Nasdaq stock exchange in 2021, raising $660m through a merger with a special purpose acquisition company.
Arrival’s collapse comes after multiple warning signs of the company’s financial distress.
As losses widened, Arrival cut jobs, changed its leadership and saw its shares suspended from trading on the Nasdaq.
A merger with a special purpose acquisition company collapsed last year, leading Arrival to secure a £40m bridge loan in November as it sought extra time to find a buyer.
Administrators are now looking to sell Arrival’s assets, including software, intellectual property, research and development, and its electric vehicle platform.