Monday, November 10, 2014

News: End of the road for Marussia

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The Marussia F1 team that began life as Manor Grand Prix in Dinnington, Rotherham, has ceased trading after going into administration.

FRP Advisory LLP were appointed joint administrators at the end of October to Manor Grand Prix Racing Limited, trading as the Marussia F1 Team, who were unable to bring new investment to the team to secure its long term future.

Manor Grand Prix secured financial backing from LDC and became Virgin Racing when they announced a link up with Richard Branson in December 2009. Russian company, Marussia Motors acquired a significant shareholding in 2010 and the team became Marussia Virgin Racing. For the 2012 season, the team became Marussia F1 and operations moved from Rotherham to Banbury in Oxfordshire to be closer to McLaren, their technical partners for the 2012 season. Marussia Motors closed its doors in April this year.

Without financial backing the company has ceased trading resulting in 200 redundancies.

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Geoff Rowley and Geoff Carton-Kelly, partners of FRP Advisory LLP, said: "It goes without saying that it is deeply regrettable that a business with such a great following in British and world motorsport has had to cease trading and close its doors.

"Whilst the team made significant progress during its relatively short period of operation, operating a F1 team requires significant ongoing investment. The Group was put into administration last month following a shortfall in on-going funding and the administration process provided a moratorium to allow for attempts to secure a long term viable solution for the Company within in a very limited time-frame.

"As joint administrators our immediate focus will be to assist staff who have lost their jobs and provide them with the necessary support to submit timely claims to the Redundancy Payments Service.

"The team will not be participating in the two further rounds of the 2014 championship remaining, in Sao Paulo and Abu Dhabi. The joint administrators will continue with their statutory duties to realise the assets of the business in the best interests of all the creditors."

Rotherham-born John Booth, a former butcher and single-seater champion, has remained as the team principal throughout. The team was established to compete in Formula 1 when the FIA, the sport's governing body, decided to address the current levels of spend and introduced cost-cutting measures. However, plans for a proposed budget cap set for 2015 don't look like being implemented.

As the search for funding went on, Manor Grand Prix Racing Limited was named on the provisional entry list for next year's F1 World Championship. The team were due around £30m in prize money due to its progress on the track this season.

Marussia F1 website

Images: Marussia F1 / Facebook

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