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Huntingdon: Lola To Enter Administration
A Huntingdon engineering company, which makes racing cars, is going to enter administration.
Lola, which employs 172 people on two sites in Huntingdon, has filed a notice that it intends to enter administration due to a 'serious cash-flow problem'.
The company was founded in 1958, and has designed cars that have taken part in famous races including the Le Mans 24 hours and Formula 1.
A spokesperson from the company said: "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.:
Board members say they will not make any further comment until Monday 21st May.
Above picture (c) Jakob Ebrey Photography
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