Malaysian firm Weststar has withdrawn from its planned deal to acquire LDV vans, forcing the firm to apply for administration.
Last month Weststar agreed a deal to acquire the Birmingham-based van maker and the government pledged a £5m four-week loan until the deal was sealed.
Business Minister Ian Pearson said the government was disappointed that the deal had fallen through.
“This is clearly a worrying time for the workforce,” Mr Pearson said.
“We are ready to offer support to the workers through Advantage West Midlands and the Job Centre Rapid Response Team.
“We gave LDV a breathing space, a bridge to the future but in the event, unfortunately, Weststar was unable to cross that bridge,” he added. Full story…