American motorcycle sport company, Erik Buell Racing has shut its operations and has filed for a court protection from its creditors. The company failed to secure enough funds while shutting down. EBR has filed for a Chapter 128 process which is an alternative to file for bankruptcy unique to the state of Wisconsin.
The company was formed in 2009 after Harley Davidson shut down its Buell Motorcycle Company. A receiver responsible for managing the liquidating the business and replaying the creditors, attorney Michael S. Polsky has been appointed by the company. The founder of Erik Buell, Milwaukee Journal Sentinal said that the deal to secure more funding had failed.
Buell said, “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.” The founder had invested his own money to begin the company and in 2013 sold the 49.2% stake to Hero MotoCorp which is India’s largest motor giant, for $25 million.
A european office was opened in 2014 and intends to import motorcycles to the continent. In the past EBR was also helping Hero to develop new models including the HX 250R with plans to distribute the model in the US.
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