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RE: Lola enters administration

RE: Lola enters administration

Thursday 17th May 2012

Lola enters administration

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



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.

Author
Discussion

marcosgt

Original Poster:

9,098 posts

88 months

Wednesday 16th May 2012
quotequote all
Bugger frown

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

M.

jimbro1000

1,615 posts

196 months

Wednesday 16th May 2012
quotequote all
marcosgt said:
Bugger frown

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

M.
Agreed

ArosaMike

1,282 posts

123 months

Wednesday 16th May 2012
quotequote all
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

27,351 posts

111 months

Wednesday 16th May 2012
quotequote all
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

1,253 posts

102 months

Wednesday 16th May 2012
quotequote all
Oh dear. I really hope there is a buyer out there, it would be a great shame for them to go under.
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ArosaMike

1,282 posts

123 months

Wednesday 16th May 2012
quotequote all
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

995 posts

111 months

Wednesday 16th May 2012
quotequote all
Very sad news.frown
I do hope that a buyer can be found for them quickly.

[AJ]

3,065 posts

110 months

Wednesday 16th May 2012
quotequote all
It would be a absolute tragedy to see Lola go. Lets hope they find a decent investor.

HDM

335 posts

103 months

Wednesday 16th May 2012
quotequote all
A great shame, I hope they survive, Lola is British motorsport aristocracy.

Jayzee

2,153 posts

116 months

Wednesday 16th May 2012
quotequote all
Sad news. Maybe a certain owner of a large CCTV company and races one of their cars could help?

Gorbyrev

978 posts

66 months

Wednesday 16th May 2012
quotequote all
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

628 posts

84 months

Wednesday 16th May 2012
quotequote all
NO!!

suffolk009

2,721 posts

77 months

Wednesday 16th May 2012
quotequote all
A very great shame (as I said elsewhere, earlier).

Hope something good comes out of this for all involved.

DouggyMc

767 posts

75 months

Wednesday 16th May 2012
quotequote all
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

1,829 posts

111 months

Wednesday 16th May 2012
quotequote all
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

1,272 posts

160 months

Wednesday 16th May 2012
quotequote all
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

2,134 posts

185 months

Wednesday 16th May 2012
quotequote all
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

299 posts

93 months

Wednesday 16th May 2012
quotequote all
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

2,799 posts

126 months

Wednesday 16th May 2012
quotequote all
frown Shocking news. Thoughts are with the team and really hope they get the investment they deserve.

Speed_Demon

2,459 posts

100 months

Wednesday 16th May 2012
quotequote all
Oh bugger.

Everyone look down the back of your sofas!