Lola Cars International has ceased public trading after the administrators concluded that the famous British racing car constructor could not be sold as a going concern.
Lola, which was established in 1958, went into administration – the British legal equivalent of bankruptcy protection – in May with debts totaling more than $32 million. The company had continued to trade through the summer while joint administrators Mark Newman and James Snowdon of CCW Recovery Solutions LLP sought a buyer.
A statement issued on Tuesday read: "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 ceased to trade on Friday, Oct. 5, which unfortunately led to the redundancy of the remaining staff working in the business."
The administrators said they expected to conclude a sale of the assets of the company in the near future. It is unclear whether they will be sold in their entirety or whether the assets will go up for auction. The trademarks to the Lola name and the intellectual property rights to its designs are owned by Lola Group Holdings.
Lola Composites, which also went into administration in May, continues to trade. The administrators remain in discussion with "two seriously interested parties" but stated that "neither has committed to progressing their purchase at this time."
Their statement continued: "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."