LDV boss optimistic over buyout

Hopes for a sale of stricken Birmingham vanmaker LDV have risen after administrators said they were in exclusive talks with a potential buyer.

PricewaterhouseCoopers (PwC) confirmed talks with an unnamed party over the sale of the business and assets of LDV Group and Birmingham Pressing Limited.

Administrators said that the potential purchaser has indicated it is looking at the possibility of resuming production at the Birmingham-based firm's Washwood Heath site.

Katherine Howbrook, spokeswoman for PricewaterhouseCoopers, said: "It would not be appropriate to comment further on the identity of the proposed purchaser at this time, given the confidentiality agreements in place and as further due diligence, which could take several weeks, still needs to be undertaken by them before any transaction can be concluded."

Most of LDV's 850 workforce were made redundant in June after the firm collapsed into administration following a failed rescue bid, putting a further 1,270 jobs at risk at other companies.

Administrators said 34 employees remained at the firm's Washwood Heath site. LDV, which is owned by Russia's GAZ, suffered financial difficulties, culminating in production being halted in December.

In June, a last-ditch rescue attempt failed after Malaysian company Weststar could not raise funds to buy the business. Katherine Howbrook added: "After an extensive marketing programme and discussions with a range of potential purchasers, the administrators can confirm they are engaged in dialogue with one party on an exclusive basis, with the hope of achieving a sale of the business and assets.

"We can also confirm that the party has indicated that it is studying the options for recommencing some production, at a time yet to be determined, at the Washwood Heath site."

Chris Shoesmith, purchasing director for LDV, has issued an email to the company's suppliers asking for details of the stock they are holding and any debts in advance of the possible sale.

He said: "It is common knowledge that investors are looking at us. We have emailed our supply base looking for information for strategic planning." Around 63 West Midlands companies supplied LDV.

R & M Metal Finishing, based in the Old Forge Trading Estate in Dudley Road, Lye, relied upon LDV for around 12 per cent of its work.

The firm are experts in finish and paint parts for vehicles.

Director Mark Rogers said: "The only way anything positive can come out of this is if the company is up and running again.

"We lost a tranch of business in December last year and still have parts and products that will only work for LDV vans.

"We don't know for sure at the moment what the intention is, whether it will be full production or not, or what the timescales will be. However, this is encouraging news and we are cautiously optimistic."