Mallory Park racing circuit has been placed into administration and all future race meetings have been cancelled.
The move comes after recent legal action was taken by Hinckley and Bosworth District Council for breaching noise levels and increasing noise complaints.
MCN reported last month on the recent £2500 fine plus £23,000 court costs imposed on Mallory Park Motorsport Limited as a result of breaching noise levels on five occasions last year.
Leicester Magistrates Court fined the circuit based on the breach of a 1985 notice, which prohibits activity on a Saturday unless it is part of a two-day event. Under the notice they are allowed four two-day events a year.
The administrator, Ian Robert of Kingston Smith & Partners LLP told MCN “The trouble is this business isn’t viable with the current rent being paid on a quarterly basis which the landlord [Titan Properties Ltd] demands. It’s just not viable.
"Now the court has ordered Mallory Park to reduce their race meetings, it has reduced the turnover of the business. Basically overnight turnover has been reduced by 50% and Mallory hasn’t been able to cover their costs. It’s a big noose round the neck of a business that can’t play at the same level.”
“I believe the council are on board to some degree in going forward. But finding a solution with the council without finding a solution with the landlord doesn’t work. We need everyone to come to an agreement, and until that’s found the future of Mallory is uncertain.”
Mallory Park developed a recovery plan whereby they requested the Land Owner reduce the annual lease rental, which had risen by over 40% over the last eight years. However, Titan Properties Ltd refused. As a result the Mallory Park directors placed the business into Administration.
Ian Robert commented further: “With a bit of luck we will get there and there and will be racing at Mallory Park before we know it. As for when, well how long’s a piece of string?”
MCN understands that Wednesday October 2 practice and the Sunday October 6 race meeting have both been cancelled. For further information visit www.mallorypark.co.uk