Arrival SA (NASDAQ:ARVL), the British-based electric vehicle manufacturer, has appointed management consultants as advisors while it prepares for potential insolvency should it be unable to secure new funding.
Listed on the NASDAQ, the electric van developer was one of the UK’s biggest tech IPO’s ever after it merged with a SPAC in March 2021, but in the years since shares in the company have fallen by around 99%.
Edging closer to bankruptcy, the group reportedly received an approach from a fund offering to inject capital; however, it is unknown whether the deal could go through in time before the firm runs out of money.
Global investors like BlackRock Inc (NYSE:BLK), which pumped close to US$120 million into the company in 2020, and car manufacturers like Kia and Hyundai all backed the project, which at the time gained interest for its strategy of targeting commercial customers rather than motorists.
Unveiling a prototype of a car which could be used by ride-hailing companies like Uber back in 2021, it appeared the group was making positive strides, forging a new slice of the electric vehicle market.
Two years later and no vehicles have made it into commercial production, instead hundreds of jobs have been cut and several switches to senior management have been made.
Arrival’s shares dropped a further 7% on Monday, having opened at around US$1.86.