Manchester-headquartered connected vehicle data company Wejo has formally entered administration after a rescue deal could not be found in time.
Wejo's management had filed three notices of intent to appoint administrations which bought it a total of 30 working days to find a buyer.
However, after no deal was agreed, Wejo Limited formally entered administration earlier this month.
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Below, BusinessLive looks at how the company ended up in this position and what could happen next.
A brief history
Wejo was founded in 2014 by chief executive Richard Barlow and employed hundreds of people.
Its largest shareholder is General Motors Ventures while founder and chief executive Richard Barlow also holds a significant stake.
Other shareholders include Sompo Holdings, chairman Tim Lee and Apollo Capital Management.
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In November 2021 Wejo floated on the Nasdaq after completing a reverse merger.
The deal with Virtuoso Acquisition Corp was first announced at the start of June 2021 and valued the business at $800m. As a result of the move, Wejo received about $225.7m.
In July 2022, BusinessLive reported the group had secured a boost worth almost $16m. It was backed by Sompo International Holdings, one of its major commercial partners, as well as current investors and certain members of Wejo’s board.
At the time it also revealed that its cost reduction efforts included implementing a hiring freeze, eliminating non-revenue projects and prioritising workflows on revenue generation.
For 2022, its full-year revenue increased from $2.5m to $8.3m while its pre-tax losses went from $217.7m to $159.2m.
When those figures were published, Wejo also said it expected its revenue to be between $20m and £30m for 2023 and make an adjusted EBITDA loss of between $45m and $55m.
The group said its losses were as a result of expansion into new markets, product development and higher public company costs, which were partially offset by increased revenues.
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In the three months to the end of March 31, 2023, Wejo's revenue increased to $3.8m compared to the $568,000 it reported in the same period in 2022. Its pre-tax losses were also cut from $40.3m to $30.9m.
On March 22 this year, Wejo's board approved a plan to reduce its workforce by about 40 employees, 16% of its total workforce.
The group said the decision was based on "cost reduction initiatives intended to reduce operating expenses, focus on revenue growth opportunities, and target cash flow positive operations prior to the end of the first half of 2024".
What has happened since the end of May?
On May 30, Wejo filed its first notice of intention to enter administration.
Wejo Ltd, an indirect, wholly-owned subsidiary of Wejo Group, said it was preparing to appoint Andrew Poxon and Hilary Pascoe of Leonard Curtis Recovery as administrators.
In a statement, the company added that it is evaluating whether it will file ancillary insolvency proceedings for Wejo Group and its other subsidiaries in other jurisdictions, including in the United States, in due course.
On June 6, BusinessLive reported that Wejo was to be delisted from the Nasdaq as a result of announcing its intension to enter administration.
Its shares were suspended at the opening of business on Friday, June 9.
A few days later, the company filed a second notice of intention to appoint administrators. The move bought it another 10 working days to find a rescue deal. It went on to file a third a final notice.
Towards the end of June, BusinessLive reported that a planned reverse merger between Wejo which would have raised around $100m had been cancelled.
Wejo was due to complete the deal with TKB Critical Technologies, a special purpose acquisition company (SPAC) by June 29.
What could happen next
According to a notice filed with The Gazette, Wejo Limited formally entered administration on July 10.
Andrew Poxon and Hilary Pascoe, both of Leonard Curtis, have been appointed to oversee the process.
The move means that no rescue deal was found in the 30 working days Wejo's management secures from the courts from May 30.
Leonard Curtis will now put together a document, which will be published on Companies House, outlining how Wejo ended up in this position and how much it owes to its creditors.
The document is expected to be published in the coming months.
The administrators are likely to be attempting to sell Wejo's assets in order to raise enough money to pay the creditors.
The business as a whole could still be saved if a buyer comes forward in the coming days.