Rail research firm bought by council

Administrators RSM UK said it ensured the Very Light Rail National Innovation Centre on Zoological Drive, Dudley, remained operational

An organisation that has been involved in a Very Light Rail system for Coventry has been bought by a council, after going into administration.

Dudley-based Black Country Innovative Manufacturing Organisation (BCIMO), a not-for-profit research organisation, was sold to the area's council, administrators RSM UK said.

It also stated it ensured the Very Light Rail National Innovation Centre, operated by BCIMO, remained operational.

Dudley Council said the authority had previously given the Black Country organisation financial support and decided to bid "to protect this investment".

Council cabinet member for resources Steve Clark said as site owner, it would receive income from "existing tenants", while looking for an operator.

The acquisition decision would generate income for the council, champion local innovation and support creating "high value employment opportunities", he added.

RSM UK said the business and assets were sold to the council and the transaction had safeguarded the centre's future and "laid the foundation for renewed investment in transport innovation".

A lack of anticipated funding and rising costs had led to cash flow challenges for BCIMO, the administrators had earlier said.

The Black Country organisation came into being in 2019, which was before the council completed the building of the innovation centre in 2022, the administrators stated previously.

VLR is like a tram, but involves single, battery-powered cars that can each transport about 50 people and do not need deep tracks to run on.

Earlier this month, Coventry City Council said it was disappointed to hear BCIMO was in administration, but it was "business as usual for us" and the vehicle was in Alcester for the next stage of development.