Arrival Sale Collapses as 70 Redundancies Announced
Deal News | Mar 10, 2025 | EIN
EV manufacturer Arrival's attempts to sell its UK entity have collapsed, leading to over 70 job redundancies. According to an EY Parthenon administrator's report, advanced negotiations were in place with preferred bidders but both deals fell through due to financing and governance issues regarding the potential buyers. Had the deals succeeded, employees would have transitioned to the new owners under TUPE regulations. The sales process, burdened by a declining electric vehicles market and involving more than 160 interested parties, is now terminated. Administrators are now focused on recovering $110.5 million owed to secured creditors through the sale of Intellectual Property and equipment, having recouped small amounts from non-core asset sales. The company, founded by Russian billionaire Denis Sverdlov in 2015, once valued at its Nasdaq peak at $13 billion, has seen its prospects dwindle after attempted SPAC mergers failed to materialize.
Sectors
- Electric Vehicles (EV)
- Corporate Administration and Insolvency
Geography
- United Kingdom – The article centers around the UK entity of Arrival and its related business operations and job redundancies.
Industry
- Electric Vehicles (EV) – The article discusses the failure of a significant sale in the electric vehicles sector involving the EV firm Arrival.
- Corporate Administration and Insolvency – EY Parthenon's role as an administrator in managing the failed sale and subsequent proceedings highlights involvement in corporate administration and insolvency.
Financials
- $110.5 million – Amount owed to secured creditors that administrators are seeking to recover through asset sales.
- £206,200 – Amount made from the sale of non-core assets since the administration process began.
- £368,400 – Further amount anticipated from asset sales this month.
- £430,000 – Amount received from debtor recoveries.
- £700,000 – Amount recovered from negotiations with Elements UK.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arrival | Target Company | Company | An electric vehicle firm founded in 2015, known for its innovative robotically-operated micro-factory production system. |
| EY Parthenon | Administrator | Company | Tasked with overseeing the administration and attempted sale of Arrival's UK business entity. |
| Denis Sverdlov | Founder | Person | Russian billionaire who founded Arrival and spearheaded its advancements into EV manufacturing. |
| CIIG Merger | SPAC Partner | Company | Partnered with Arrival for its successful Nasdaq listing in 2021. |
| Kensington Capital Acquisition Corp | Potential SPAC Partner | Company | Involved in a SPAC merger proposal with Arrival that ultimately fell apart in 2023. |