A company which makes miniaturised electric versions of classic cars has secured a rescue deal led by an American merchant banking group.
Sky News understands that the future of Hedley Studios – formerly known as The Little Car Company – has been salvaged through a pre-pack administration deal.
FRP Advisory is understood to have acted as administrator before selling the business to an entity controlled by Island Capital Group.
Hedley Studios was founded in 2018, when luxury car-maker Bugatti approached Ben Hedley to see if he could recreate a 1920s Type 35 racing car at half-scale to mark its 110th anniversary.
In a statement issued in response to an enquiry from Sky News, the company said it had built and delivered more than 500 vehicles to clients in more than 60 countries in the last 17 months.
Hedley Studios manufactures its cars at three-quarters the size of the original model, with the resulting vehicles typically costing £75,000 or more.
“We’re thrilled to welcome Island Capital Group as a strategic partner in the next phase of Hedley Studios’ growth,” Mr Hedley said.
“Its investment and belief in our vision mark a pivotal moment for the company as we accelerate our expansion and reach new global audiences.
Hedley Studios makes its cars in partnership with a range of luxury manufacturers, including Aston Martin, Bentley and Ferrari.
Andrew Farkas, founder, chairman and CEO of Island Capital, which initially backed Hedley Studios in 2023, said: “This latest investment is testament to the entrepreneurial spirit of Ben and his team in building a successful British luxury brand in a short period of time.
“Automotive enthusiasts globally are increasingly keen to honour these historic icons, bringing them to new audiences in a new, fully electric way.
“Our broader investment marks the beginning of a new chapter for Hedley Studios, reinforcing its position as a leader in the creation of luxury, driveable artworks, and Island Capital is excited to be part of that growth journey.”
