Lola Cars has announced that it is going into the UK legal equivalent of bankruptcy protection as it continues to search for possible investors.
The company, which was formed in 1958, said the latest economic downturn has caused a serious cash-flow problem that had forced it into making the decision. It also blamed the move on a failure to pay ongoing R&D tax credits.
"It is with enormous regret that a decision has been taken to issue notices of intention to appoint an administrator to Lola Cars International Ltd. and Lola Composites Ltd.," said Lola in a statement. "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."
Lola creations have claimed five LMP2 Le Mans 24 Hours titles since 2000. The company has also worked with major manufacturers including Nissan, MG and Honda. Last year it captured the LMP1 and LMP2 constructors' titles in the ALMS and the manufacturers' title in LMS.
Lola said the board will not make any further comment until May 21.
The company previously went into administration in 1997.