EV startup Arka is looking to sell its UK division's assets, intellectual property | Tech Crunch

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Commercial EV Startup Arrival Business continues to unfold.

Arrival announced in a regulatory filing on Monday that its UK arm is entering administration, the country's bankruptcy reform. The troubled company, which went public in 2021 through a merger with a special-purpose acquisition firm, said it was looking to sell its UK assets and intellectual property to repay creditors that helped keep it afloat.

The push into administration comes a week after Nasdaq announced it was delisting the startup's shares from its stock exchange, and less than a year after the arrival put together a $300 million lifeline in an effort to turn the business around.

Arrival said other subsidiaries outside the UK would continue to operate, but the company did not explain what that meant. According to the Financial Times, more than 170 jobs are at risk in the UK alone.

Once valued at more than $13 billion and backed by Hyundai and UPS, Arrival made big claims about how it was going to revolutionize the way electric vehicles were made. Today, the arrival is worth about $9 million.

Its EV focus is building electric commercial vans and buses in highly compact “microfactories” that are located in city centers. Those plans never panned out as the company continued to spend money, while also taking on a variety of projects like an electric bus and a car meant for Uber. Arrival has cycled through several executives and been rebuilt at least three times, shedding workers each time.

In 2022, Arrival shifts its focus to the United States and away from the UK market, where it is headquartered and where the first EV vans are due to be delivered. A key part of the restructuring aimed at preserving capital. However, it too fell as Arrival failed to produce and deliver commercial vehicles.

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