Racing car engineering firm Lola Cars was founded in 1958 by Eric Broadley on the success of front-engined sports cars like the Mk I, before creating various single-seaters, the iconic T70 and many other notable race cars. Based in Huntingdon, England, the company eventually diversified into one of the oldest and largest manufacturers of racing cars in the world.
Despite this storied history and present-day racing success–five Le Mans class titles since 2000–Lola Cars International Ltd has been put into administration. The company said the financial problems are a result of the most recent economic downturn and the decision of HMRC (Her Majesty’s Revenue and Customs) to not pay ongoing R&D tax credits, which caused a serious cash flow problem for the businesses.
Lola Cars International Ltd Press Release 22 May 2012:
More than 100 of the 176 jobs at two Cambridgeshire businesses have been retained while the Joint Administrators continue to trade the businesses while searching for new owners.
Mark Newman and James Snowdon of CCW Recovery Solutions LLP, appointed as Joint Administrators yesterday by directors, have announced that 28 of the 65 employees of Lola Cars International Limited have been retained, while 37 have been made redundant with immediate effect.
The companies’ directors simultaneously appointed CCW Recovery Solutions LLP to place Lola Composites Limited into administration. As a result, the decision has been made to retain 75 of the company’s 111 employees, with 36 of the employees unfortunately being made immediately redundant.
The Joint Administrators have welcomed significant interest from potential buyers and they are currently in discussions with prospective new owners as a result of Lola Cars International’s illustrious history in motorsport and excellent facilities at the Huntingdon site, including access to a wind tunnel.
Lola Cars International Ltd, formed in 1958, has recently seen significant investment in technology and the capability in the motorsports business. As a result of Lola Cars International’s expertise a separate business, Lola Composites Limited, was formed to serve many high-tech industries, including defence, aerospace, communications, renewable energy, automotive and motorsports.
The ongoing economic challenges had caused serious cashflow problems for the businesses, leading to yesterday’s decision to appoint Joint Administrators.
[Source: Lola Cars; photo credit: Tim Scott / Fluid Images]