The recent news of David Collard, the buyer of Britishvolt, being charged with assault and harassment in New York has raised concerns about the future of the takeover. This incident, which occurred on Madison Avenue in November, has shed light on a potential obstacle in the acquisition process. The Britishvolt project, once considered a part of the UK’s “green industrial revolution,” had promised to build a £4bn “gigafactory” for manufacturing electric car battery packs. However, due to financial difficulties, the company went into administration in early 2023. David Collard, the founder of Scale Facilitation, an Australian investment firm, agreed to purchase Britishvolt for £8.57m with plans to use the site for producing batteries for the Australian military. However, several payment disputes and outstanding debts have cast doubts on the deal’s completion.
The assault charges against David Collard add another layer of uncertainty to the situation. According to court documents, Collard is accused of physically injuring a man during the altercation. He has pleaded not guilty, claiming self-defense and stating that he intervened to protect a female friend who was being harassed. The outcome of this legal case could have a significant impact on the future proceedings of the Britishvolt acquisition, as potential investors might hesitate to commit due to the ongoing controversy surrounding Collard.
Furthermore, the financial instability of Britishvolt raises concerns for the company’s current and former staff. Many employees have reported unpaid wages and pension contributions, while others have resorted to issuing statutory demands to receive their dues. The delayed payments and lack of transparency from Collard have strained the relationship between the workforce and the potential buyer. This situation has attracted negative attention and damaged the reputation of Britishvolt, making it more challenging to recruit skilled professionals and attract new investors.
The extended administration period until January 2025, granted by the administrator EY, reflects the complexity of the financial and legal issues surrounding Britishvolt. To secure the Cambois site, where the gigafactory was planned to be built, additional funds of £11m are required to pay property investor Katch. Without the necessary capital, the entire Britishvolt project remains in jeopardy.
The incident involving David Collard also highlights the importance of thorough due diligence when evaluating potential buyers and partners in business transactions. EY, the administrator overseeing Britishvolt’s administration, has defended its decision to sell the company to Recharge Industries despite the ongoing payment disputes and legal troubles. However, this situation emphasizes the need for comprehensive assessments of the financial stability, credibility, and reputation of buyers before finalizing any business deals.
The fallout from the assault charges and the unresolved payment issues may impact the perception of the Britishvolt project in the public and investor communities. The lack of financial stability and potential legal complications surrounding the takeover raise doubts about the viability and success of the gigafactory initiative. The uncertainty surrounding Britishvolt’s future may also affect the UK government’s commitment to its green industrial agenda and the broader goal of transitioning to electric vehicles. Investors and stakeholders within the green energy sector should closely monitor the developments and exercise caution when making decisions related to Britishvolt and its potential investors.
In conclusion, the assault charges against David Collard and the ongoing payment disputes surrounding the acquisition of Britishvolt create significant uncertainties for the future of the project. The reputation and credibility of the potential buyer, as well as the financial stability of the company, are at stake. Potential investors and stakeholders must carefully assess the situation, considering the potential impact on the green energy sector and the UK’s transition to electric vehicles. Thorough due diligence and cautious decision-making are essential in navigating this complex and evolving situation.
