About 200 employees at LDV dealerships across Europe have been forced to work for nothing following the van-maker’s collapse with debts of £75 million.
Staff at the crisis-torn Birmingham van maker’s dealer network in Holland, Belgium, Spain, Denmark, Poland and France are still at work despite the closure of the Washwood Heath factory.
But they have now seen their wages dry up completely following LDV’s collapse at the beginning of June, it was revealed today.
The future of scores of jobs on the continent has been plunged into jeopardy by the LDV crash - with both MAXUS and DAF dealers caught up in the crisis.
And today LDV dealers from Holland and Belgium were consulting a lawyer for an application to a Dutch court for a five to six-week breathing space over payments due for tax, pensions, car leasing and other bills.
Henk Kruit, Commercial Manager for LDV Group Benelux, based near Amsterdam, said: “MAXUS dealers in Holland, Belgium, Spain, Denmark, Poland and France have individual debts of tens of thousands of pounds or more.
“These dealers, mostly small dealerships - including 75 per cent of all Belgium DAF dealers - are desperate.
“LDV still owns offices in Holland, Spain and France and those offices are still open. The employees are all still working, without receiving a penny.”
Mr Kruit said the European dealer network caught up in the aftermath of LDV’s collapse included up to 35 businesses across Holland and Belgium, around 20 in Spain, a further 20 in France, and others run by import partners in Denmark and Poland.
“We are still busy working with registration documents, questions about warranties and the like. We remain open, but there is no money,” said Mr Kruit.
“We are just trying to survive till the decision is taken as to which investor buys LDV. We are pinning our hopes on a sale to a British company or a European company. The European dealer network is a vital part of the LDV operation.
“We want to be able to continue our work - our heart is with LDV and there are a lot of jobs dependent on this.
“This afternoon we are going to see a lawyer and we will be asking the Dutch courts for a delay of payments for five to six weeks. We are asking for breathing space from people who are pressing for payment for tax, the pension fund, lease cars etc.”
In the UK, more than 230 LDV dealers and suppliers owed millions of pounds in total have been told by administrators PricewaterhouseCoopers that no warranties will be honoured, even if work had been carried out before the collapse of the Washwood Heath factory.
Up to nine businesses from the UK and overseas have signed confidentiality agreements covering first round indicative offers ahead of possible further due diligence on LDV’s books.