JANUARY 5, 2001
Riley & Scott splits with Reynard
THE problems surrounding the Reynard company continue with the news that its US subsidiary Riley & Scott is to become independent once again. How this has been achieved was not revealed. Reynard acquired the company in April 1999 from Bob Riley and Mark Scott for a total of $10.4m, of this $4.4m was in cash and $6m in Reynard shares. At the time Reynard said that it was going to use Riley & Scott to develop its sales in the sportscar market and in the Indy Racing League.
Now Reynard says that after looking at the relationship both companies have agreed to go their separate way. Adrian Reynard admitted that "the true potential of Riley & Scott and its expertise within its marketplace is not being realized through the association with us".
Reynard added that his company needs to put all its efforts into its own core markets of CART and Formula Nippon.
There is obviously more to the story than meets the eye as it makes little sense for Reynard to have let go of Riley & Scott because the firm wanted to expand. The obvious conclusion is that Bob Riley and Mark Scott decided to buy back the company they started and Reynard was happy to take the money.
|Print News Story|
FORD CONFIRMS JAGUAR F-TYPE
KIRCH TO WITHDRAW FROM EM.TV DEAL?
LAUDA STAYS ASSOCIATED WITH HIS AIRLINE
MINARDI DUO JOIN PROST
RILEY & SCOTT SPLITS WITH REYNARD
SOCCER RIVALS F1 FOR SPONSOR MONEY
STEWART LOOKING FOR GOVERNMENT HELP FOR SILVERSTONE
WHY ARE ENGINEERS LEAVING JORDAN?