Written by: Keith Tully
Published: 28th October 2014
It's been a bad week for Formula One after Marussia became the second constructor in the space of five days to enter into administration.
The demise of the Anglo-Russian car manufacturer, whose headquarters are based in Banbury, Oxfordshire, follows hot on the heels of rivals Caterham also falling into administration last week.
Administrators are now in control of Marussia and have confirmed they will miss the upcoming United States Grand Prix in Austin, Texas.
A statement from the administrators confirmed Marussia, known as Manor Grand Prix Racing Limited and trading as Marussia F1 Team, “will continue to operate while the joint administrators assess the longer-term viability of the company in its present form”.
In a long statement, the administrators added:
“Whilst the Marussia team has made significant progress during its relatively short period of operation, the highlight of which included securing two constructors’ championship points in the current F1 season, the position remains that operating a F1 team requires significant ongoing investment.
“With the existing shareholder unable to provide the required level of funding, the senior management team has worked tirelessly to bring new investment to the team to secure its long-term future, but regrettably has been unable to do so within the time available. Therefore, they have been left with no alternative but to place the company into administration.
“The joint administrators have assessed that, given the current financial circumstances of the group, it is not viable for the Marussia F1 team to participate in the next race, the 2014 Formula One United States Grand Prix, due to take place this weekend in Austin, Texas.
“The company will continue to operate while the joint administrators assess the longer-term viability of the company in its present form. Following Austin there are two further rounds of the 2014 championship remaining, in São Paulo and Abu Dhabi, and the team’s participation in those races will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity.
“No redundancies have been made following the company’s entering into administration and all staff have been paid in full to the end of October. The ongoing staff position will, however, be dependent on whether the company can secure new investment in the limited time available.
“We remain highly focused on engaging with interested parties.”
The news has brought fresh criticism from the F1 community, with commenters on news stories pointing the finger at F1 boss Bernie Ecclestone.
"Well done Bernie, you're finally killing off the goose that lays the golden egg. Your outright greed and autocratic dealings have bought the sport to its knees," said one disgruntled F1 fan.
*Image used under the Creative Commons license. Owner: Cloundbound
19th January 2021
Big companies in the UK are being told by the government to pay their suppliers within 30 days of receiving their invoices.Read More
13th January 2021
Retailers in the UK endured what was statistically their worst year on record in terms of sales growth during 2020.Read More