Photo: W Series
W Series, the Formula Regional championship exclusively for female drivers, has entered administration and the remaining series staff have been made redundant.
Its troubles began in March 2022 when the centrally-run series realised the race calendar it had co-ordinated with Formula 1 meant it would not actually be able to get its cars to some rounds in time to race. That meant a deal was struck with FRegional Oceania, which used the same Tatuus monocoque, to borrow cars from that series for two rounds.
After four of the scheduled eight rounds had taken place, there was a change to the calendar as the race at Suzuka in Japan was replaced by one in Singapore. In the background there were significant financial issues.
In 2019 the W Series company failed to pay significant partners, prompting their exit prior to the series’ return in 2021. It ended that year with net liabilities of £7,572,802 according to the company’s most recent unaudited financial statements. However, the company’s liabilities include a loan from one of the two directors amounting to £5.16 million.
The cash position of the company deteriorated during 2021, leaving it with just £212,367 in the bank at the end of the year. Despite raising additional capital, the cumulative losses of the company increased by £13.34 million in the same period and it was owed over £4.5 million by debtors.
According to public filings, the company had managed to raise an additional £3.58 million in capital from shareholders during 2022 in an attempt to maintain liquidity. But the series’ chief executive officer Catherine Bond Muir then told media there was “no business case” for the series.
The Singapore race went ahead, then the financial problems led to the last two rounds in North America being cancelled.
Focus switched to raising funds for a 2023 season to take place, but that plan also failed and the company entered administration. On June 14, Kevin Ley and Henry Shinners of Evelyn Partners LLP were appointed joint administrators.
“The Company had been unable to commit to the 2023 race season due to its liquidity position. The directors had been in discussions with various parties to provide additional funding together with a potential sale of the business. Unfortunately, these discussions did not progress,” explained Ley.
Shinners added: “The joint administrators will explore all available options to allow the W Series to restart in the future. We are seeking expressions of interest in the business and assets of the Company. We would ask that any interest is registered with us as quickly as possible.
“Staff had been made redundant or had left the business before our appointment and it has unfortunately been necessary to make the remaining staff member redundant.”