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Darren Staples / Reuters
LDV vans sitting parked at their plant in Birmingham, England in February.
"The pressure of the unprecedented global downturn, coupled with the actions of a small number of suppliers, has caused the position of LDV to deteriorate to the point where LDV has been left with no alternative than to apply for administration," a company spokesman said.
"This application will be processed on May 6, and the management team will do everything up to that date to secure the future of the business," he said.
LDV employs 850 people at its plant in central England. It has not been producing vehicles since running into financial problems late last year.
"There continues to be interest from a potential foreign investor who wants to keep manufacturing at Birmingham. We will continue to do everything we can to secure this investment and to support the work force," the spokesman said.
The British government has said repeatedly that any further funding for the company should come from GAZ, Russia's second-largest car producer, which has been hard hit by a slump in domestic sales.
LDV last month asked the government for between £4 million and £5 million ($7.3 million) as a bridging loan ahead of a planned management buyout.
"It is somewhat ironic that since the [management buyout] was rejected, which aimed to transform LDV into an advanced electric van company, the government has made clear its desire to make Britain a leader in green vehicle technology," said Erik Eberhardson, leader of the planned buyout and GAZ chairman.
"Despite this setback, I will continue to work behind the scenes to try and develop an 11th hour solution for LDV and save the jobs and production in the U.K.," he said.
