Lola Cars International, the racing car group, which started in 1958 has filed an intention to appoint administrators citing severe cashflow problems following HMRC decision not to pay R&D tax credits. The firm employs 172 people in Cambridgeshire and builds cars for the Le Mans race. In a statement the firm said.
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 filing of a notice of intention puts a ring fence around the debts of the company for 10 days and stops creditors attacking the company. It is summed up by their statement as it gives them a breathing space. It is possible that a creditor has issued a winding up petition but it has not been advertised yet
The last filed accounts in 2011 show the firm made a profit of £159k on a turnover of £6m. The firm said it will make a further announcement on the 21st May 2012.