Money-losing A1GP in deep financial trouble

UPDATE The Speedcar series has been axed for similar problems (see Hot News). Given the huge expense of A1GP with little income to show for it, and given the news below, should we order the flowers for the funeral now or will they find another sugar daddy to keep them afloat another year?

06/29/09 As we have questioned for years, with near zero TV viewership, thin attendance, cars with minimal sponsorship, and the high expense to fly away to every race on its calendar, how is it that A1GP could stay afloat? Then last year they rolled out a new car with a Ferrari engine. Nice car but where did that money come from?

Now comes word that the company – which is responsible for much of A1GP's day-to-day operations, such as looking after the cars – went into liquidation last Wednesday.

A spokesperson for A1 Grand Prix Operations Limited said: "Like many other companies in today's difficult economic environment, we had cash flow problems and we haven't been able to pay them (the suppliers)."

It is not clear what will happen to the company's 40 employees, who work at Silverstone and in London. Sources told The Independent that Tony Teixeira, the company's chairman, has indicated that workers could be re-employed through another vehicle in the next few days.

Meanwhile, the spokesperson for A1GP said the court could soon appoint an administrator to A1 Grand Prix Operations Limited, which is a subsidiary of A1 Holdings, a company based in the British Virgin Islands.