MALLORY Park could cease to be a racing circuit after its owners went into administration.
The circuit has been involved in a legal dispute with Hinckley and Bosworth District Council for the past two years and Mallory Park Motorsport Ltd (MPML) said it had no other option after a loss in earnings following the legal dispute.
Noise complaints from local residents rose from eight, in 1998, to 153 in 2012. MPML was found guilty of five cases of breaching noise levels and fined £2,500 and £23,500 in court costs.
MPML, which employs 145 people, had reduced activity at the circuit to just two days a week, all track day activity and young driver training has been cancelled and the circuit has suffered a loss of earnings as a result. MPML had made efforts to cut its outgoings and remain profitable, by trying to negotiate with the land owner Titan Properties Ltd, a Leeds-based property developer. MPML's lease costs had risen by 40% over the last eight years. Brian Robinson, director of Titan Properties said that they had offered MPML a 50% reduction in rent but it was rejected by MPML.
The Mallory Park estate was bought by Titan Properties Ltd in 1983 after it had suffered from poor spectator turnout. Titan Properties and its owner Chris Meek, formerly a single-seat car driver, invested in Mallory in an effort to increase specatator numbers. Titan Properties then leased Mallory Park Circuit to the Overend family who formed MPML Ltd and sold it to the British Automobile Racing Club in 2005.
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."