THE vast majority of the 850 workers at van maker LDV will be made redundant, administrators said last night.

A court placed the Birminghambased firm into administration yesterday, after its Russian owners said they had run out of options to rescue the company.

There are a further 1,200 people employed at the chain’s dealerships, with some 4,000 people supplying parts.

Administrators said they are talking to “interested parties” who may be able to take on part of the business, including Weststar, the Malaysian firm with which talks broke down at the eleventh hour a week ago.

Administrator PriceWaterhouse- Coopers said last night: “Sadly, we do not have the funding necessary to keep employees on, so it is with great regret that we place ourselves in a position where we will have to make redundant the vast majority of the workforce.”

LDV’s Washwood Heath plant has been at a near-standstill since before the end of last year during the search for a new owner.

Since 2006, the firm – formerly Leyland DAF Vans – has been owned by Russia’s Gaz Group, controlled by Oleg Deripaska.

A Gaz spokesman said it was “a sad day for the LDV workforce, suppliers and British manufacturing”.

LDV managers and workers were angered last week when they were forced to cancel a planned lobby of Parliament because of Prime Minister Gordon Brown’s cabinet reshuffle.

Directors had hoped to persuade the Government to agree to a £60m loan to secure the firm, but no ministers were available to meet them.

The firm claimed the loan would have cost the state much less than the collapse of the business will.