Lola Cars International ceases trading

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Lola Cars International, the racing car maker which went into administration earlier this year, has ceased trading.

Administrators CCW Recovery Solutions had continued the automotive group’s trading activities since May, together with those of its sister firm Lola Composites, also in administration, while looking for new owners.

However the firm said it had failed to find a purchaser the Cambridgeshire-based company, founded in 1958 and which built cars for the Le Mans 24-hour race.

The last members of staff from the car maker’s workforce of 65 were made redundant last week. When CCW took over the business in May 37 staff were made redundant.

Lola Composites continued to trade, CCW said, but 23 staff had lost their jobs, on top of 36 employees made redundant in May.

CCW adminstrators dealing with the car operation said in a statement: “Following our appointment as joint administrators of Lola Cars International on 21 May 2012, we continued trading the business, on a reduced scale, whilst seeking a purchaser.

“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 5 October, which unfortunately led to the redundancy of the remaining staff working in the business.

“We expect to conclude a sale of the assets of Lola Cars International Limited in the near future.”

Administrators at CCW dealing with Lola Composites said there had been expressions of interest for the business but these had come to nothing.

“The business is continuing to trade, with 62 staff remaining in the business, which has an order book that runs into 2013. Whilst continuing to trade we are seeking a purchaser for the business as a going concern," they said.

Back in May cashflow problems resulting frm the economic downturn were highlighted as a reason for the businesses going into administration.