The company behind the cars and design of the Formula 1 Caterham team has gone into administration, putting 200 jobs at risk. According to reports, the company’s failure is due to the lack of financial backing, leading to creditors being unpaid.
Caterham Sports Limited (CSL) supplies to 1 Malaysia Racing Team (1MRT), the company that runs the Caterham F1 team in the World Championships.
Smith & Williamson have been appointed administrators and will now look at all rescue options available for Oxfordshire-based CSL, including a possible deal with 1 Malaysia. They are also considering a sale of the business’s assets.
Over 200 members of staff were recently transferred from CSL to 1 Malaysia, however under the present circumstances, there may be possible job losses if a deal isn't made quickly. Administrator, Finbarr O’Connell, said “As administrator I control the machines they are working on, the computers, the factory, the intellectual property. If I don’t do a deal with 1MRT then they will have nothing to work on and their jobs could be at risk.”
Caterham F1 has no points this season yet and is positioned at the bottom of FIA Championship. Now with the manufacturer in administration, their future looks bleak.
24th October - The company that runs the F1 team, 1 Malaysia, has now entered administration, alongside Caterham Sports Limited. O'Connell had this to say: "This is a very cash-strapped team. I have been approached by people who are interested, so my immediate position is to further the negotiations with them as quickly as possible in order that somebody with proper financial backing can hopefully take over the team."
According to reports, the decision was made after Caterham Sports Limited requested management should be handed over to the administrators.
UPDATE: 10th November - Caterham F1 team have now turned to crowdfunding to raise capital for the company. The team are looking to raise £2.35 million in order to enter the Abu Dhabi Grand Prix on 23rd November. Not only can fans help to bring the team back by donating, they will be given merchandise or certificates as a thank you. Those willing to donate £1000 or more can have their name on a race car or get to go on a seven-day driving experience with Caterham. See the Crowdcube fundraising raise for all the options - the deadline for donations is the 14th November.
There are also reports that the crowdfunding campaign has sparked interest in a potential buyer for the team. Watch this space!