Troubled Gloucestershire engineering firm Versarien is on the brink of appointing administrators after a vital deal to sell its remaining assets and subsidiaries fell through.
Failed Sale Seals Company's Fate
The Longhope-based business, which specialises in producing graphene for sectors including automotive, biomedical and clothing, confirmed on Wednesday, November 26, 2025, that a potential acquirer had withdrawn from negotiations.
The non-binding agreement, signed in October with an unnamed UK public company, would have seen approximately £200,000 change hands for Versarien's remaining valuable assets. This package included the sale of Total Carbide Limited, Gnanomat SL, Versarien's patent and trademark portfolio, and graphene production equipment held by Versarien Graphene Limited, which is already in administration.
Months of Mounting Financial Pressure
In a statement to the stock market, the AIM-listed company revealed: "The company has now been notified by the potential acquirer that it is withdrawing its interest as detailed previously."
The board confirmed it is now taking professional advice and considering its limited options, which may include appointing administrators to the company. Versarien told investors it would make further announcements in "due course as appropriate".
This latest crisis follows months of severe financial warnings from the company, which has already taken drastic action to survive:
- Placing several of its subsidiary businesses into administration
- Closing down its Korean operations in July 2025
- Seeing the proposed sale of assets to a Chinese joint-venture blocked in August 2025 on national security grounds
Broader Implications for UK Technology Sector
The Chancellor of the Duchy of Lancaster intervened to block the earlier proposed sale to Chinese interests, citing concerns about protecting graphene know-how and intellectual property with dual-use applications.
Versarien's potential collapse represents a significant blow to the UK's advanced materials manufacturing sector, particularly in the South West where the company has been a notable technology employer.
The company's journey from promising graphene innovator to potential administration highlights the challenges facing advanced material manufacturers in securing sustainable funding and commercial success.
