Lola may not be a name recognized by the average consumer, but racing fans will know it well. The British concern has built and continues to build race cars that have spanned an enormous variety of series and disciplines since its founding in 1958, including (but not limited to) Formula One, Le Mans, CART and just about every formula feeder series you could think of, including Formula Two, Formula 3, Formula 3000, Formula 5000 and A1GP. Now, unfortunately, the company is filing for bankruptcy protection.

The reasons are pretty simple: too many expenses and not enough revenue, although tax credits it was due from the British government are also said to be partially to blame. As a result, the outfit responsible for – among numerous other accolades – five LMP2 titles at Le Mans since 2000 alone is entering financial administration as it seeks new investors.

Along with it, Lola Cars is taking Lola Composites, however the effect this might have on its concerns in defense and aerospace (among other areas) remains to be seen. As is the future of the SP/300.R track car which Lola builds for Caterham, or the countless racing teams that continue to count on Lola to build and support their sports prototypes. But with so many racing programs at stake, we can hardly imagine the company's considerable capabilities and expertise will go unclaimed for long. Scroll down for the official announcement.
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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.

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    • 1 Second Ago
      • 2 Years Ago
      ...walked like a woman, talked like a man.
      • 2 Years Ago
      Please don't let this legendary race car company disappear into history.
      • 2 Years Ago
      This is a sad day for us enthusiasts...
      • 2 Years Ago
      • 2 Years Ago
      Maybe Hennessey should take them over? There's a whole new market for him to ripoff!
      • 2 Years Ago
      no 1 currrr
      • 2 Years Ago
      • 2 Years Ago
      Rob Munro
      • 2 Years Ago
      They have entered administration, that is not the same as bankruptcy!! Get your facts right instead of using poor journalism.
        • 2 Years Ago
        @Rob Munro
        I think administration in the UK is pretty equivalent to bankruptcy protection in the US. It doesn't mean that the firm is bankrupt.
          • 2 Years Ago
          When a company goes into administration in the UK, it means that it is technically insolvent and its entire affairs are being dealt via a bankruptcy lawyer. Creditors cannot contact the company, its employees, directors or shareholders directly. However, it is illegal for the company to trade. A finite amount of time will pass to determine whether the company can be salvaged via an MBO, or it will be purchased, or whether it be wound-up (i.e. liquidated and its assets sold).
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