Stricken vanmaker LDV will apply for administration today following the collapse of a rescue deal, putting thousands of jobs at risk of being axed in the coming days.
The Birmingham-based firm, owned by Russian giant GAZ, will apply to a court for administrators to be appointed.
The firm, which employs 850 workers, could have its assets sold quickly, finally ending any hopes of saving the business.
Thousands more workers are employed in firms which distribute LDV vans or supply parts and other services, dealing a fresh blow to the motor manufacturing industry.
LDV managers issued a final appeal to the Government on Friday to help save the company, warning that around 4,000 jobs were at risk after a rescue deal by Malaysian firm Weststar collapsed.
Managers argued that a loan of £60 million would help refinance the firm and help turn it into a profitable business, but a delegation by workers to Westminster to press home the case had to be called off because the Cabinet reshuffle meant no ministers were available to meet them.
The Government was warned that the cost of closure to the Treasury will be up to £53 million in unemployment benefits and lost taxes in the first year, while the economy will lose over £200 million of wages, purchases and export revenue.
LDV has not built any vans since mid-December after a slump in demand.Reuse content