Alain Prost will now disappear completely from the Formula One scene just weeks before the start of the next season.
Prost had reportedly been approached by three backers including a French-led and an Italian-led consortium to help the team wipe out a $27million (EUR31m) debt mountain. Both offers were considered unsuitable by the Versaille courts.
"I have to admit failure which is tough," said Prost after the one-minute announcement at the court outside Paris. "In the first weeks after buying the team I realised it would be harder than I thought."
The French venture never matched its owner's success as Prost fell out with drivers, sponsors, mechanics and former engine- supplier Peugeot SA. With teams deriving as much as 80 percent of revenue from sponsorship, Prost Grand Prix's demise comes as companies cut spending amid declining profits.
Prost's closure, the sport's first liquidation since Lola folded after the 1997 season,
The liquidation will pave the way for Heinz-Herald Frentzen to race for the Arrows team.
To read about the knock-on-effect of Prost's liquidation, see the features section of sportbusiness.com
