Wejo, the connected vehicle data company headquartered in Manchester, has officially entered administration after failing to secure a rescue deal in the last 2 months. It is also in a significant amount of debt. 

Updates about the company’s financials have been on the market for some time now. After filing three notices of intent to appoint administrators, the company’s management gave the enterprise 30 working days to find a buyer. However, as no agreement was reached, Wejo Limited was placed into administration yesterday.

Founded in 2014 by CEO Richard Barlow, Wejo employed hundreds of people at its Manchester office. Its largest shareholder is General Motors Ventures, with Richard Barlow also holding a significant stake. Other shareholders include Sompo Holdings, Chairman Tim Lee, and Apollo Capital Management.

In November 2021, Wejo went public on the Nasdaq through a reverse merger with Virtuoso Acquisition Corp, valuing the business at £619.4 million and providing Wejo with approximately £175 million.

Throughout 2022, the company implemented cost reduction efforts, increased its full-year revenue from £1.95 million to £6.43 million, and reduced its pre-tax losses from £168.6 million to £123.2 million. As of March 31, 2023, Wejo’s revenue increased to £2.94 million compared to the same period in 2022. The company had also approved a plan to reduce its workforce by around 40 employees in March 2023.

After the expiry of its third notice of intent on July 10, Wejo has now formally entered administration. Leonard Curtis Recovery Limited of Manchester are its appointed administrators – a decision first indicated in the company’s initial notice of intent in late May. 

According to the latest filing, the breakdown of outstanding amounts indicates a debt of at least £45.75 million. This does not represent the final debt amount. The company’s administration was also accompanied by unpaid staff pensions covering several months. Some employees have reported wage deductions from their accounts after the May notice of intent. 

Although some staff members have received partial or full payments since then, the specific extent of remaining liabilities and any potential further obligations for the company remains unclear as of now. It will likely take several weeks before the administrators can provide a comprehensive report. Keep watching this space for more updates.