F1 team Marussia shut down, staff laid off

AP News
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Posted: Nov 07, 2014 9:59 AM

LONDON (AP) — The London-based administrator of Marussia shut down the Formula One team on Friday.

Marussia ceased trading, and the remaining staff were made redundant following its move into bankruptcy protection in October, joint administrator Geoff Rowley of FRP Advisory said.

"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," Rowley said.

"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 a very limited time-frame. Sadly no solution could be achieved to allow for the business to continue in its current form."

There were about 200 staff employed at Marussia's base in Oxfordshire, England.

"Our immediate focus will be to assist staff who have lost their jobs and provide them with the necessary support," Rowley said.

FRP became administrator after Russian billionaire shareholder Andrei Cheglakov was unable to provide the funding needed to keep the team going. Marussia were the second F1 team to enter administration in four days, following Caterham.

Both teams were absent from the grand prix last Sunday in the United States, and Marussia will not compete in the final two races of the year. Caterham will also be absent in Brazil, while it continues to overcome its financial problems.

Marussia went into administration three weeks after its French driver Jules Bianchi crashed into a recovery vehicle at the Japanese GP, and Bianchi remains in hospital in Japan in a critical but stable condition.