Photo: Wyles Hardy & Co.
W Series’ assets have been put up for auction following the collapse of discussions with potential purchasers of the business.
The centrally run, all-female Formula Regional championship was forced to bring in administrators from Evelyn Partners in June 2023 after incurring significant losses over its three seasons of racing.
The administrators were initially hopeful of attracting sufficient interest by September of last year from potential buyers looking to take over the business as a going concern, and its assets which included a fleet of Tatuus T-318 cars, shipping containers, refuelling rigs, awnings and the series’ intellectual property comprising of “trademarks and social media content”.
In its latest progress report the administrators admitted that “despite interest from a significant number of parties” they had been unable to complete a sale of the business. As a result, they have decided to offer the individual assets for sale by auction.
The online auction, to be conducted by Wyles Hardy & Co., will run from January 17-31. The assets include the 19 cars complete with “Alpha Romeo” (sic) engines, spare parts, spare bodywork, tools and quad bikes.
According to the administrators’ progress report, from an initial list of 120 potential purchasers there were 47 parties who were given access to the company’s records in a data room, resulting in the receipt of eight offers for all or part of the business.
Negotiations were conducted with two specific parties who had submitted non-binding offers for the entire business. However, despite an extension of the deadline to November 2023, no agreement was reached.
Of W Series’ creditors, freight logistics provider DHL had retained a lien over property in its possession and is expected to receive the £518,783 it is owed.
Next in line are the tax authorities and employees who have preferential standing by law, although even here the administrators are unable to confirm that sufficient funds will be available to meet their claims.
For the 63 so-called “unsecured creditors”, who have submitted claims amounting to a total of £15.4 million, any payment is “currently uncertain”.
The administrators have also provided additional information on a debt of £15.8 million, owed to the company by a Californian entity, The Bunker LA2. According to its LinkedIn profile, The Bunker is a private car club for lovers of exotic cars “where culture, community, and cars converge”.
The report provides no further information on the nature of the debt, or the relationship between The Bunker and W Series. The administrators have, they say, been “unable to progress recoveries of the book debt given the limited funds in the administration”.
W Series has not yet published its financial statements for 2022, which were due on 30 September 2023 according to Companies House in the United Kingdom. Interestingly, the most recent accounts available, made up to 31 December 2021, show a total debt due to the company from all debtors of only £4.5 million. It is unclear how or why an additional debt of at least £11.3 million arose in the subsequent period.
For W Series’ creditors, the prospects of recovering amounts owed currently look bleak.