TWR Group Put into Receivership

Former Formula One team chief Tom Walkinshaw's TWR Group has gone into receivership following the collapse of Arrows Grand Prix last year, administrators PricewaterhouseCoopers confirmed today.

The Group, which contains numerous business interests of Scotland-born Walkinshaw, 56, has been appointed to PwC employees Rob Hunt, Mike Jervis and Rob Birchall for assessment. TWR employs around 500 people in two British bases, in Witney, Oxfordshire, and Worthing, Sussex, and had a year-end turnover of more than £140 million last year.

"The TWR business has a strong and established reputation built up over a number of years by working for all the major car manufacturers," said Hunt, speaking after the announcement. "The group has suffered in recent years through the losses on its investment in Arrows, the Formula One team, which went into receivership in December, as well as a general downturn in the sector.

"We are confident that with the support of customers and employees the business can continue to trade whilst a purchaser is found. Expressions of interest have already been received and we are looking to pursue those as quickly as possible."

PricewaterhouseCoopers confirmed that the group and subsidiaries TWR Automotive Engineering Limited, TWR International Holdings (UK) Limited, TWR Automotive Contracts Limited and Crailglade Limited are all in receivership.

America's Indy Racing League (IRL) relies on TWR for the supply of engines to its Infinity Pro Series. Walkinshaw is also facing legal battles with Cosworth and former Arrows partner Morgan Grenfell following the collapse of his Arrows team.

Staff were told the news at a meeting in the Group's Leafield headquarters today afternoon and one employee confirmed: "It is true that the company has gone into receivership."