Lola goes into administration

Lola Cars has announced that it is going into administration.

The famous racecar engineering firm, founded in 1958, is blaming the current economic situation and the "decision of HMRC not to pay ongoing R&D tax credits".

This, says Lola, has caused a serious cashflow problem for the company.

A spokesperson for Lola said the notice of intention to appoint an administrator "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". The administration will also affect Lola Composites.

But it's not the first time the company is facing administration. In 1997, Lola's disastrous Formula One campaign - in which the cars only turned up for two races before the team pulled out - preceded the company entering receivership, eventually being bought by businessman Martin Birrane.

Following this, Lola focused on its sportscar programme, and enjoyed a string of racing successes; since 2000, it has claimed five LMP2 titles in the Le Mans 24hr race, as well as taking the LMP1 and LMP2 constructors' title in the American Le Mans Series with Dyson Racing, and the Le Mans Series manufacturers' crown with Rebellion Racing.

Trackside at the six hours of Spa 2012