Sky News has learnt that Rutland Partners is working with advisers from Teneo on an accelerated disposal of WNV Tech, which it acquired in 2020.

The company, formerly known as Woodall Nicholson Group, specialises in the production of electric vehicles through a number of subsidiaries, including Vehicle Conversion Specialists (VCS).

Its Coleman Milne division produces electric hearses and limousines.

One industry source said on Thursday that Rutland had injected more than £5m into WNV Tech as recently as the last few months, but that hopes of a solvent sale were receding.

Final bids were understood to have been sought by Teneo several days ago, with the appointment of administrators said to be likely before the end of the month if a buyer is not found.

WNV Tech employs 600 people and manufactures vehicles at nine production sites, according to its website.

The underlying reasons behind its financial troubles were unclear, as were the identities of any potential buyers of the business.

A sale of parts, rather than the entirety, of the group is possible, one insider suggested.

Rutland declined to comment.