Erik Buell Racing has ceased its operations and plans to file for protection from creditors under Chapter 128 of Wisconsin’s bankruptcy code, according to news being broke by the Milwaukee Journal Sentinel.
Under Wisconsin law, EBR will be placed into receivership (the company will be run by attorney Michael S. Polsky), and ultimately bids will be made on purchasing the bankrupt company. If no bids are made, the company’s assets will be auctioned off, with the profits going to EBR’s creditors.
“The turn we recently took, after we thought we were moving forward, was unexpected. We thought we had secured funding, but in the end, we were not able to get the funding in place. Therefore we need to do the best we can under the circumstances for all parties in interest,” Buell said in a statement to the Milwaukee Journal Sentinel.
“While this is a sad ending, I personally hope for a new and better beginning,” Buell added.
This news comes as a shock to the industry and to EBR dealers, but is perhaps unsurprising given EBR’s lack of success on the race track, and more importantly, on the dealership floor.
EBR’s business efforts have been buoyed heavily by investment from Hero Motor Corp. However, given this news, it seems the Indian company cut-off its lifeline to EBR, especially since Buell mentions funding in his statement.
For now, we will have to wait and see what happens once EBR goes to auction, and whether someone is willing to breathe new life into the sport bike company.
Source: Milwaukee Journal Sentinel