Thursday 17th May 2012

Lola enters administration

Economic downturn and tax troubles tip racing car constructor over the edge

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British racing car constructor Lola has served a notice of intention to appoint an administrator to Lola Cars International Limited and Lola Composites Limited.

Lola has been building racing cars since 1958 - including such iconic creations as the T70 sports car from the 1960s. More recently it has branched out into design and engineering services beyond motorsport, including aerospace, defence, renewable energy and the general automotive industry with Lola Composites Limited (including work on the Infiniti Emerg-E concept).

In a statement issued on its website, Lola said that "the latest economic downturn and the decision of HMRC not to pay ongoing R&D tax credits has caused a serious cashflow problem for the businesses."

It has not so far been able to find investment for the business, but says it will continue the search while an administrator is appointed.

The Cambridgeshire firm, which employs 172 people, said the move would allow the board to continue its discussions with possible investors and prospective purchasers with a view to securing the best outcome for the staff, creditors and customers.

[marcosgt]

Bugger

Hope someone buys them - They've made some of the best looking sportscars over the years.

M.

[jimbro1000]

marcosgt said:

Bugger

Hope someone buys them - They've made some of the best looking sportscars over the years.

M.

Agreed

[ArosaMike]

Did mention earlier after being surprised it hadn't been noticed!

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Really hope for Caterham's sake it doesn't affect the SP300/R

[davepoth]

ArosaMike said:

Did mention earlier after being surprised it hadn't been noticed!

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Really hope for Caterham's sake it doesn't affect the SP300/R

I wouldn't be surprised if Tony is on the phone...

[lankybob]

Oh dear. I really hope there is a buyer out there, it would be a great shame for them to go under.

[ArosaMike]

davepoth said:

I wouldn't be surprised if Tony is on the phone...

It did cross my mind.....

Could be quite a nice little tie up. Especially if the new buyer happened to have an F1 team in need of some extra talent/resources.....

[angry jock]

Very sad news.
I do hope that a buyer can be found for them quickly.

[[AJ]]

It would be a absolute tragedy to see Lola go. Lets hope they find a decent investor.

[HDM]

A great shame, I hope they survive, Lola is British motorsport aristocracy.

[Jayzee]

Sad news. Maybe a certain owner of a large CCTV company and races one of their cars could help?

[Gorbyrev]

Yup, wonder if T Fernandes is seeing a possible hook up. Thoughts go out to the staff of a truly great British racing company.

[alexpa]

NO!!

[suffolk009]

A very great shame (as I said elsewhere, earlier).

Hope something good comes out of this for all involved.

[DouggyMc]

Big shame, I live locally to the Huntingdon factory and I know a few of the guys that work there. Really do hope they find a new buyer.

[bobberz]

I hope all turns out well for them. It would be a shame to lose yet another of the fabled British sports car companies.

Let's hope they don't go the way of TVR, Marcos, and Bristol (to name but a few).

[griffdude]

That's a real shame, they made some great cars. Echo the sentiments above that someone REALLY needs to step in with a rescue package.

Do they still have a tie-up with Morgan for this year's LM24hrs?

[Jasper Gilder]

Didn't help when they got stitched up on that abortive F1 project a few years ago - understand the sponsor never coughed up

Racing without Lola would be like bread without butter

[sunsurfer]

Obviously I don't know their tax situation but government agencies like Inland revenue need to think holistically. Weighing up the benefits to the exchequer of making Lola bankrupt with 172 people drawing benefits and loss of income to rural Cambridgeshire compared to leniency and time to pay taxes they may owe.

[moribund]

Shocking news. Thoughts are with the team and really hope they get the investment they deserve.

[Speed_Demon]

Oh bugger.

Everyone look down the back of your sofas!