Lola Cars International Limited declares insolvency
Lola Cars International Ltd formed in 1958 and has been a well known figure in the racing arena. The British auto company that builds race cars has been at the forefront for over 54 years where Formula 1, Le Mans CART and other racing series are concerned. However it looks like it is the end of the circuit for this racing car manufacturing company as the company has filed for bankruptcy protection.
High expenses and limited revenue seems to be reasons for this dismal financial picture. The company is seeking new investors as they have already made significant investments in technology while also diversifying into Lola Composites Limited dealing with defence, aerospace, communications and motorsports markets.
Economic downturn, a stringent decision taken by HMRC in regards to payments for Research and development tax credits have all had an adverse effect on the company finances. All this has caused the company to declare itself insolvent and seeks an administrator to take over the affairs of Lola Cars International Limited and Lola Composites Limited to help sort out their cash flow problems.
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Statement from Lola Group Holdings Limited
Lola Cars International Ltd was formed in 1958. In recent years, significant investment has been made in technology and capability in the motorsports business as well as diversifying and creating Lola Composites Limited, serving the defence, aerospace, communications, renewable energy, automotive and motorsports markets.
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 is with enormous regret that a decision has been taken to issue Notices of intention to appoint an Administrator to Lola Cars International Limited and Lola Composites Limited. This step allows 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 of both businesses.
The Lola board have declined to make further comment until Monday 21st May.