Skip Barber Racing School files for Chapter 11 bankruptcy

Skip Barber Racing School LLC, a career launching pad for many of today's racecar drivers, has filed a voluntary petition for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York.

Court documents filed on Tuesday show the school owes between $10 million and $50 million to creditors, including Lime Rock Park to the tune of about $1.2 million. Skip Barber owns Lime Rock Park, but he divested himself from the school in 1999.

“I sold the Skip Barber Racing School in 1999 and I have no involvement with it.” Barber said.

Skip Barber Racing School has operated a system of racing schools, driving schools, racing championships, corporate events and special projects across North America since 1975. Among the drivers who have participated are Ryan Hunter-Reay, Sergio Perez, Gabby Chaves, Josef Newgarden, Juan Pablo Montoya, Marco Andretti, Scott Speed, John Edwards, Conor Daly and Spencer Pigot.

In a statement, the company said it plans to sell its business on an expedited basis. Debt structure and high operating leverage – or fixed costs – are cited as the company's main challenges.

"Until the sale, the Company will continue to conduct its operations as a debtor-in-possession and expects to the sales process to take approximately two months," the statement continued.

"We want to take this opportunity, on behalf our employees and Instructors who have dealt with many challenges to thank you for staying the course and believing in our Company."