Mallory Park Motorsport Limited has been put into administration. The move comes as circuit bosses were forced to limit motorsport activities, resulting in a significant loss of revenue.
The circuit was subject to a “highly restrictive” noise notice in place since 1985. More recently, some of the provisions which were open to interpretation have been placed under scrutiny by local residents.
After the residents approached Hinckley & Bosworth Borough Council, the local authority prosecuted MPML over four breaches of the noise notice during 2012. This forced to circuit organisers to adhere to the strict provisions of the 1985 notice, which allowed 40 days' racing on Sunday annually with a dispensation for four Saturdays a year.
Testing was allowed on Wednesdays, but bosses were forced to cancel all track day operations and use of the track for community activities, including young driver training.
The resulting loss of revenue forced Mallory Park management to develop a recovery plan, which relied in part on a reduction in annual land lease. Despite a 40 per cent increase over the past eight years, the landowner “refused to make a substantive offer to allow the recovery plan to proceed”, said Mallory Park.
Despite support from the BARC, MPML has been placed in administration. The administrator, Ian Robert of Kingston Smith & Partners LLP, said: "I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.
"To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC."