The Scottish truck manufacturer, which once employed a workforce of over 70 specialists across research, engineering, and development, officially entered administration following a protracted period of financial instability. Paul Dounis and Mark Harper of Opus Restructuring were appointed as joint administrators to oversee the process.

Founded in 2017, HVS established itself as a pioneer in the hydrogen-electric vehicle sector, leveraging UK Government grants and private investment to develop proprietary green technology. However, the company’s financial health deteriorated sharply when it failed to secure new investment for a two-year period ending in early 2024.

By the time administrators were called in, the firm was burdened by £25 million in debt held by floating charge holders, and £7m in ordinary unsecured debt.

In the months leading up to the collapse, the company attempted to survive through aggressive cost-saving measures. This included slashing director salaries, freezing purchase orders, and implementing workforce restrictions, The Herald reports.

The crisis peaked in May 2024 with the closure of the Glasgow head office. By January 2025, the company had been reduced to a skeletal operation, with a small group of founding staff members working on a purely voluntary basis to keep the project alive.

To maximize returns for creditors and ensure the survival of HVS’s technological breakthroughs, the administrators facilitated a pre-pack sale to H2 Vehicle Systems Ltd, a connected entity. The assets and intellectual property were sold for £145,000.

Administrators defended the strategy, stating that a pre-pack sale was the most appropriate course of action compared to an immediate liquidation. They noted that the deal “preserved the value of the assets and the intellectual property”, allowing ongoing research and development projects to potentially continue under the new ownership.