Erik Buell Racing has ceased operations and filed for court protection from creditors as the company failed to secure enough funding to keep going.
EBR, which formed in 2009 after Harley-Davidson shut down Buell Motorcycle Company, filed for the Chapter 128 process, an alternative to filing for bankruptcy unique to the state of Wisconsin. Attorney Michael S. Polsky has been appointed at the company’s request as the receiver responsible for managing the liquidating the business and repaying creditors.
In a statement published by the Milwaukee Journal-Sentinal, founder Erik Buell says a deal to secure more funding fell through.
“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,” says Buell.
“To say this setback is a disappointment does not begin to express what I feel right now. I am personally grateful for the support of our outstanding workers, customers and vendors. While this is a sad ending, I personally hope for a new and better beginning,” Buell said.
Buell invested his own money to start the company and in 2013, sold a 49.2% stake to Hero MotoCorp, India’s largest motorcycle maker, for $25 million. EBR opened a European office in 2014 with hopes to import motorcycles to the continent.
The company introduced its 1190RS racebike in 2011, followed by the 1190RX production model in 2013 and the 1190SX streetfighter last year. The company had been working on another model, expected to be an adventure-tourer called the 1190AX, but it’s not clear how far along EBR had gotten before today’s news.
EBR was also helping to develop Hero develop new models including the HX250R with plans to distribute them in the U.S. It’s not clear whether Hero will continue on with those plans.
[Source: Milwaukee Journal-Sentinal]