Lola Cars International Ltd was formed in 1958 and it is now filing for bankruptcy protection. Lola Cars started by building small front-engined sports cars, and branched out into Formula Junior cars before diversifying into one of the oldest and largest manufacturers of racing cars in the world.
Lola was acquired by Martin Birrane in 1998 after the unsuccessful Lola MasterCard attempt at Formula One. Lola Cars is a brand of the Lola Group, which combines former rowing boat manufacturer Lola Aylings and Lola Composites, who specialize in carbon fiber production.
The official press release states:
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.