After a battle to keep it afloat, administrators seeking a buyer for Lola Cars International have announced that the company has ceased trading after it proved to be impossible to sell it as a going concern.
Lola went into administration in late May but continued to trade while CCW Recovery Solutions LLP attempted to find a buyer for both Lola Cars International and Lola Composites.
While a deal for the composites side of the business is being discussed with two interested parties, Lola Cars International has now closed its doors with the assets of the company set to be sold in the near future.
“Following our appointment as joint administrators of Lola Cars International we continued trading the business, on a reduced scale, whilst seeking a purchaser,” a statement from the administrators read. “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 has ceased to trade, which unfortunately has 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.”
While talks continue on trying to finalise a deal to save Lola Composites from following the same route, more staff have been made redundant as the administrators seek to keep the business afloat.
“Since our appointment we have continued to trade the company while seeking a purchaser for the business as a going concern,” the statement continued. “During that time we have regrettably had to make a number of staff redundant.
“There have been two seriously interested parties in acquiring the business, both of whom have engaged solicitors who in turn have been discussing the details of the sale contract with our own solicitors. However, though both of those interested parties are still discussing their interest with us, neither has committed to progressing their purchase at this time.
“Following a review of the likelihood of a sale of the business in the short term, and the current order book, we had to consider our staffing needs going forward and we had no alternative but to make a further 23 staff redundant.
“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.”