Lola Cars goes under but composites fights on
The iconic Lola Cars brand has crashed. Administrators have been unable to find a buyer to continue the business, which has led to the last few staff being laid off at the factory in the Cambridge UK technology cluster.
Assets are now being realised. But the composites side of the group is continuing to trade, with two buyers in legal discussions, and the administrators hope to conclude a deal.
Mark Newman and James Snowdon of CCW Recovery Solutions LLP were appointed as joint Administrators of Lola Cars International Ltd and Lola composites Ltd on May 21.
In an update today they administered the last rites on the carmaking side of the business. They said: “Following our appointment as joint administrators of Lola Cars International we continued trading the business, on a reduced scale, whilst seeking a purchaser.
“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 has ceased to trade, which unfortunately has led to the redundancy of the remaining staff working in the business.
“We expect to conclude a sale of the assets of Lola Cars International Limited in the near future.”
On the composites element of the business they were much more hopeful, although a further third of the remaining workforce have been laid off.
They said: “Since our appointment we have continued to trade the company while seeking a purchaser for the business as a going concern. During that time we have regrettably had to make a number of staff redundant.
“There have been two seriously interested parties in acquiring the business, both of whom have engaged solicitors who in turn have been discussing the details of the sale contract with our own solicitors. However, though both of those interested parties are still discussing their interest with us, neither has committed to progressing their purchase at this time.
“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.
“The business is continuing to trade, with 62 staff remaining in the business, which has an order book that runs into 2013. Whilst continuing to trade we are seeking a purchaser for the business as a going concern.”