MARCOS ENGINEERING APPOINTS ADMINISTRATOR
Company proceeds to wind down operations
We are aware this is being talked about on some PH forums but we thought it deserved a place on the PistonHeads home page.
Here is the release as we received it. PH sends its thoughts out to all those involved with the company.
October 9th, 2007 - Kenilworth, UK.
Marcos Engineering Limited ("Marcos, the
Company") today announced that it has entered Administration with a view to
completion of existing work in progress. Marcos' plan of dissolution will see the
Company wind up its ongoing business activities, sell its assets and distribute
proceeds and beneficial interests to shareholders and creditors as soon as practicable.
In reaching this decision the Company considered a number of factors including the
Company's current and future strategic and market opportunities and business
prospects, limits on new capital from outside sources, increasing cost of ongoing
capital and prevailing economic conditions.
Marcos was founded in 1959 and went into receivership in 2000. The Company was
restarted in 2002, conducting business as an independent supplier of a new high
performance family of hand built lightweight sports cars that provide a uniquely
exhilarating driving experience. Despite mounting competition from companies with
substantially greater financial, technical, distribution and marketing resources Marcos continued to develop its sports cars that received international acclaim.
As the cost of capital continued to climb and the potential for profit faded, the
Company's Board and management took steps to minimize product and operational
costs while they investigated various strategic opportunities and engaged in
discussions regarding lower cost distribution, alternate manufacturing and external
capital transactions with potential business partners. After reviewing Marcos's
business prospects and potential opportunities, the Company came to the conclusion that Administration of the Company would have the highest probability of returning the greatest value to its shareholders and creditors.
"Regrettably, despite the extraordinary efforts of our employees, suppliers and
dealers, we simply could not attain a profit point, reduce our cost base or raise the
necessary capital to sustain the business", said Tony Stelliga, Managing Director.
"My sincerest gratitude goes out to everyone that worked relentlessly to revive the
Great British Sports Car Company one final time".