Lola Group Holdings Limited announced that it has filed for bankruptcy protection for its Lola Cars International Limited and Lola Composites Limited divisions.
The famed British race car maker has fallen on hard times and according to Lola, “the latest economic downturn and the decision of HMC not to pay ongoing R&D tax credits has caused a serious cashflow problem for the businesses.”
Most recently, the first Caterham SP/300.R made its way off the production line and was heading to America, built by Lola. It will be interesting to see what will happen to the Caterham car along with many race teams that depend on Lola’s expertise, production and manufacturing.
Lola hopes to speak with possible investors and prospective purchasers to help secure the best outcome for the staff, creditors, and customers of both businesses.
The Lola board will not make further comment on the issue until May 21.