MAY 5, 1997
Financial reality hits Lola
THE Lola Formula 1 team has gone into liquidation with debts which are believed to be in the region of $5m. Team founder Eric Broadley was hoping that he would be able to find money to keep the team going, but at a meeting of creditors on Monday there was no rescue package and the team - which was present at only one Grand Prix (in Australia) and failed to qualify both of its cars - was thus closed down. Twenty-seven of the 28 members of staff have been made redundant.
Announcing the closure, Broadley was keen to point that the collapse of the team would not have any effect on the other companies in the Lola Group which will continue to supply customer chassis for CART, Indy Lights and Formula 3000.
Despite Broadley's comments there are strong rumors that the collapse of the F1 program has caused Lola Cars serious financial problems but that a survival plan has been put in place to ensure that the company - with an illustrious history dating back to 1958 - continues to operate.
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