UK commercial EV manufacturer Arrival has been delisted from Nasdaq as it looks to sell off assets and intellectual property.
Administrators from advisory firm EY-Parthenon’s turnaround and restructuring strategy team were appointed as joint administrators of Arrival UK Ltd and Arrival Automotive UK Limited, and are "exploring options for the sale of the business and assets of the companies, including the electric vehicle platform, software, intellectual property and R&D assets, for the benefit of creditors".
All of Arrival’s other subsidiaries will continue their activities as usual outside of the administration process, the company says.
Arrival was once valued at $13bn on the promise of addressing a large market with its all-electric vans and trucks. Production ramp-up stalled in 2022, however, and the company has been on a downward spiral ever since.
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In April 2023, the company reduced its line-up to just one US-made vehicle, the Class 4 XL van, hoping to attract fleet operators’ business with the purchase discount under the US Inflation Reduction Act.
But after failing to make any vehicle sales, Arrival has been in choppy waters for some time, and the company terminated a deal with Spac Kensington Capital Acquisition Corp V in July, which saw it miss out on a proposed $238mn capital injection.
Arrival also raised an emergency $50mn capital injection in November, in the form of convertible notes, as it reported a $155mn loss for H1 of the year, a 50pc increase in losses from the previous half-year period.
As its share price dwindled around $0.25, Arrival was served a delisting notice by Nasdaq on 30 January.
"The foregoing decision was the result of the company not being in compliance with Nasdaq’s continued listing standards, which deficiencies were previously disclosed by the company, and the failure to submit a remediation plan related thereto," Arrival said after the notice was served.
Arrival is the latest EV start-up to hit bankruptcy, after US firms Lordstown Motors and Proterra, as well as Sweden's Volta Trucks, declared bankruptcy last year.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
