British racing car constructor Lola Cars cease public trading

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Lola Cars International has ceased public trading when a buyer did not come forth. The iconic brand was formed back in 1958 and became a constructor whose racing machines were sought after around the globe in a variety of pro and club racing events; including open-wheel and Le Mans-style series.

In May, the first news of the failing company shocked many; especially the teams that currently run the Lola chassis as they aim for sports car racing series’ championships.

In Great Britain, the term for “bankruptcy” is known as going into “administration”. The debts at that time were over $32 million. While in the “protected” administration, the company continued to trade under the watchful eyes of Mark Newman and James Snowdon of CCW Recovery Solutions LLP. They were, of course, seeking a buyer.

Lola LMP2 chassis
Lola LMP2 chassis

Photo by: Ed Fahey

On Tuesday, October 9th, a statement was released: "At the end of September, having not received an acceptable offer for the business as a going concern, we considered whether or not we should continue trading.”

"During the first week of October, we concluded that a going concern sale of the business was not going to be possible, and the company ceased to trade on Friday, Oct. 5, which unfortunately led to the redundancy of the remaining staff working in the business."

However they did confirm that at this time Lola Composites, which also went into administration in May as a separate entity is still on the trading market. The administrators remain in discussion with "two seriously interested parties" but stated that "neither has committed to progressing their purchase at this time."

At this time, Newman and Snowdon have not reached a time, place and date for when the Lola Cars assets will be auctioned off.

The trademarks owned by Lola are “intellectual property rights” and therefore owned by Lola Group Holdings.

Lola B12/80 Coupé LMP2 on track at Sao Paulo
Lola B12/80 Coupé LMP2 on track at Sao Paulo

Photo by: xpb.cc

"Following a review of the likelihood of a sale of the business in the short term, and the current order book, we had to consider our staffing needs going forward, and we had no alternative but to make a further 23 staff redundant."

This comes at a time when sportscar racing teams are headed into the season finales over the next few weeks. They include the European Le Mans Series, American Le Mans Series, and the World Endurance Championship.

In 2010, Lola was one of the constructors that made a bid to the IZOD IndyCar Series of the future chassis. They lost the bid, as did others, to Dallara.

Rendering of the Lola 2012 B12/00 IndyCars submitting in March of 2010
Rendering of the Lola 2012 B12/00 IndyCars submitting in March of 2010

Photo by: Lola

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About this article
Series WEC
Article type Breaking news
Tags alms, business, lemans, lms, lola, wec

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