The Manor Formula One (F1) team’s future is hanging in the balance as it enters administration after failing to find a new financial backer.

The announcement was made shortly after Sky News revealed the Banbury-based outfit was on the brink of collapse – placing hundreds of jobs at risk.

Joint administrators from FRP Advisory to Just Racing Services Limited (JRSL), the operating company behind the team, said it employed 212 people directly.

The collapse does not involve sister firm, Manor Grand Prix Racing, which holds the rights to the team’s participation in F1.

However, FRP’s statement confirmed the team now faced a race against time to secure its participation in the looming F1 season.

FRP partner Geoff Rowley said: During recent months, the senior management team has worked tirelessly to bring new investment to the team to secure its long term future, but regrettably has been unable to do so within the time available.

Therefore, they have been left with no alternative but to place JRSL into administration.

The joint administrators are currently assessing options for the Group.

The 2017 season commences on 26 March in Melbourne, Australia, and the team’s participation will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity.

No redundancies have been made following JRSL’s entering into administration and all staff have been paid in full to the end of December.

The ongoing staff position will however be dependent on whether new investment can be secured in the limited time available and the joint administrators will continue to review the ongoing financial position.

Manor had been bankrolled for the past two years by Stephen Fitzpatrick, an energy industry executive.

Its collapse was confirmed as Liberty Media prepares to complete a takeover deal for the sport, with executives floating the idea of a spending cap to be introduced in the coming years to aid smaller teams.

Manor finished in 11th and last place in the 2016 constructors’ championship, meaning it missed out on millions of pounds in prize money.

(c) Sky News 2017: Manor F1 in hands of administrators after failing to find backer