Marussia cease trading

Marussia’s administrators have called time on the financially stricken Formula One outfit.

Last month Marussia followed Caterham into administration.

Talk of the financial problems in the Formula One paddock has been rife all season, with teams discussing a desperate need to lower costs in the sport, whilst a contingency plan of teams running a third car have been discussed if three teams leave the sport.

In October Caterham first fell into administration and are absent from the grid for both the United States and Brazilian Grand Prix.

Marussia soon followed into administration and also missed the US GP last week.

It was hoped however that under the guise of Manor Grand Prix the team would not only be part of the grid in 2015 but would also return in time for the 2014 season finale in Abu Dhabi.

There had been talks with numerous potential investors, from Asia, Europe and America, with Marussia looking like a reasonable investment for a serious investor with interests in Formula One.

Whilst Marussia’s debt was estimated at around £30 million, the prize money due to the team if they could hold on to ninth place in the Formula One Constructors Championship would have wiped that debt clear.

Not only that but due to the events in Austin, a £100 million ?fighting fund? is set to be set-up by F1?s majority shareholder, CVC Capital Partners to aid the smaller teams with their finances.

Unfortunately however the administrators have today decided to call time on the team, with no investors putting forward a convincing case to the administrator.

The news means that about 200 staff are set to be made redundant.

‘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,’ said joint administrator Geoff Rowley from FRP Advisory LLP in a statement.

‘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. Sadly no solution could be achieved to allow for the business to continue in its current form. We would like to thank all the staff for their support during this difficult process.

With Marussia ceasing to exist, it is believed that they will be deleted from the Formula One standings and will no longer hold ninth place in the constructors championship.