Home Business London Mayor's fund faces £3m loss as EV firm Breathe collapses

London Mayor's fund faces £3m loss as EV firm Breathe collapses

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The Mayor’s Energy Efficiency Fund, set up by Sadiq Khan, injected £3.2m into Breathe in March 2022, 15 months before it called in administrators, Sky News learns.
City editor
Friday 16 June 2023 14:48, UK
London taxpayers could face millions of pounds in losses after an electric vehicle company backed by Sadiq Khan collapsed into administration.
Sky News can reveal that the Mayor of London’s Energy Efficiency Fund (MEEF) injected more than £3m into Breathe, which provides EVs including Teslas to private-hire drivers.
The funds were committed by MEEF just 15 months ago.
Breathe operates a subscription service allowing customers to take full ownership of their car at the end of the period.
It also offers financial products including insurance.
Insolvency practitioners from Begbies Traynor were appointed as administrators to Breathe earlier this week.
The reasons for its collapse were not immediately clear.
MEEF was set up by the Greater London Assembly in 2018 to provide debt and equity to small business-owners.
The fund is managed by Amber Fund Management, a major infrastructure investor.
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A spokesperson for the mayor said: „The mayor’s Energy Efficiency Fund is the largest of its kind in the UK and has already invested in 17 projects across London mobilising over £380m of investment, which is expected to save over 38,000 tonnes of CO2 and nearly 40m kwh of energy.
„MEEF’s original investment of £3.2m in Breathe represents less than 1% of the total funding mobilised by the fund to date.
„The mayor is aware that Breathe has recently entered administration.
„The appointed administrators are working with all parties to complete a sale of the business and if needed realise assets to enable the debt to be repaid.”
Begbies Traynor could not be reached for comment.
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