England's Lola has announced that its car-building arm will shut its doors for good after spending several months in dire financial straits.
Lola's car-building arm and its composite-building arm both went into financial administration last May after they were unable to pay back their debts. The administrators in charge of selling the company explained that they did not find a suitable buyer in a timely manner, leaving them with no choice but to close it down and liquidate its assets. All Lola's employees have been laid off.
In an earlier statement, Lola blamed its lack of funds on the generally poor economic situation that most countries in the European Union are facing. To make matters worse, the automaker says that it was badly hurt by the government of England's decision to stop awarding tax credits for research and development.
While Lola Cars will soon be history, the company's composite-building arm is expected to be sold before the end of the year and continue its operations. The administrators in charge of Lola's estate said that they found several potential buyers for the firm but have yet to receive a solid commitment to buy it out.
Lola opened its doors in 1958 and quickly made a name for itself in England and abroad by building lightweight race cars. In recent years it has partnered with major companies such as Nissan, Caterham and Honda, and last year it won two constructor's titles in the American Le Mans Series.