Legendary racing car manufacturer Lola is set to go into administration after hitting a cashflow shortfall.
The company says that the decision will provide an opportunity to secure fresh investment or find a new owner.
A statement from Lola Group Holdings today said: “The latest economic downturn and the decision of HMRC not to pay ongoing R&D tax credits has caused a serious cashflow problem for the businesses. It is with enormous regret that a decision has been taken to issue Notices of intention to appoint an Administrator to Lola Cars International Limited and Lola Composites Limited.
“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 says it won’t make any further comment until May 21.