- Volta Trucks has been acquired by Luxor Capital Group, one of its major creditors, following its administration.
- Despite the acquisition, a significant portion of Volta’s 600 UK workers remain unemployed, with most losing their jobs after the company’s collapse in October.
- The buyout was conducted by Luxor’s new ownership, Volta Commercial Vehicles Ltd., but it remains uncertain whether the new owner will rehire the laid-off staff.
Volta Trucks rescued by major creditor, but job uncertainty looms for 600 UK workers
In a turn of events, Volta Trucks, the electric truck start-up, has been rescued from collapse by its major creditor, Luxor Capital. The specific deal value remains undisclosed.
Alvarez & Marsal managing director Andrea Jakes said:
“We’re pleased to have safeguarded the future of Volta Trucks by facilitating its acquisition by Volta Commercial Vehicles Ltd.”
But for the 600+ UK workers, the scene is less triumphant – the cold reality is unemployment, at least for now.
Just last week, it was revealed that Luxor Capital Group was in negotiations with the company’s administrators, Alvarez & Marsal, for the buyout of Volta Trucks. Volta had faced financial challenges in October, leading to a bankruptcy filing in Sweden, its home base. Subsequently, administrators A&M were appointed to manage the UK operations.
The main UK manufacturing, research, and development facilities of Volta housed a workforce of 600 employees. However, the majority found themselves unemployed following October’s event. A limited number of retained staff are expected to maintain their positions under the new ownership.
The fate of the employees who were let go remains uncertain at this stage. It is unclear whether Luxor’s new ownership entity, Volta Commercial Vehicles Limited, will rehire the displaced staff.
While the details of the deal and the fate of the UK workers remain uncertain, this rescue provides a glimmer of hope for the company’s future. The challenges faced by Volta Trucks, from funding struggles to issues with its battery supplier, underscore the volatile landscape of the electric vehicle industry. The future of Volta Trucks will be closely watched as it attempts to recover and redefine its position in the evolving electric vehicle market.
