Volta Trucks appoints Alvarez & Marsal to oversee bankruptcy
Professionals from Alvarez & Marsal have been appointed to the administration of European automotive firm Volta Trucks. The downfall of the electric truck service provider came after the collapse of its battery supplier left it unable to meet orders.
Founded in 2019, Volta Trucks manufactures and provides services for electric trucks. With a headquarters in Stockholm and an engineering leadership hub in London, the firm also holds operations in both countries as well as France, Spain, the Netherlands and Austria.
Earlier in 2023, the company confirmed customer production orders for the first 300 manufacturing slots of its full-electric Volta Zero, with an associated revenue of more than €85 million. Months later, however, a perfect storm of market disruption has seen the firm file for bankruptcy in Sweden, and administration in the UK.
With global shortages of materials used in the production of batteries, and continued disruption to the world’s supply chain, Volta Trucks’ downfall ultimately hinged on its battery supplier. Proterra folded earlier in the year, something which Volta Trucks says had a “significant impact” on its manufacturing plans, reducing the volume of vehicles that it had forecast to produce.
At the same time, the uncertainty with its battery supplier also negatively affected Volta Trucks’ ability to raise sufficient capital in what it described as an “already challenging capital-raising environment” for electric vehicle manufacturers. At a time of major expansion for the firm, this saw funds spread increasingly thin.
In May 2022, Volta Trucks had confirmed its entry strategy for products, services, and manufacturing for the North American market. In the same year, it had also confirmed the location of its first Volta Trucks hub in the UK, on White Hart Lane in Tottenham, London – a facility covering 30,000 square feet, operating eight workshop bays.
In a statement, the group commented, “With deep and sincere regret, the board has therefore taken the difficult decision to take steps to file for bankruptcy proceedings in Sweden. The main trading entity of the group, Volta Trucks, will shortly file for administration in England. Other group entities will also shortly file for insolvency proceedings in the relevant jurisdictions.”
Insolvency practitioners from Alvarez and Marsal have been appointed to take charge of the cross-border procedure. Andrea Jakes, Mark Firmin and Joanne Hewitt-Schembri of A&M Europe were appointed as joint administrators, and will now manage the company's affairs, business, and property.
In a statement, the administrators said, "We will continue to consider the options for the company as we search for a potential buyer to secure the future of the business."
