Lola Cars has announced that it is going into financial administration as it continues to search for possible investors.
The group, which was formed in 1958, said the latest economic downturn has caused a serious cash-flow problem that had forced it into making the decision. It also blamed the move on the HMRC not paying ongoing R&D tax credits.
“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,” said Lola in a statement.
“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.”
Lola creations have claimed five LMP2 Le Mans 24 Hours titles since 2000. The company has also worked with major manufacturers including Nissan, MG and Honda. Last year it captured the LMP1 and LMP2 constructors’ titles in the ALMS and the manufacturers’ title in LMS.
Lola said the board will not make any further comment until 21st May.The company had already gone into administration in 1997.
This article originally appeared in Autosport.com