Sad news again, this one from Erik Buell Racing (EBR) The company announced that it is winding down its operations. The decision was taken due to the company’s difficulty at finding new dealers in a very soft US motorcycle market. Without distribution, 2016 sales were very weak and year 2017 was presenting an even greater challenge.
The announcement of Victory Motorcycles closing and of other brands slowing down their production magnified the problems that a small manufacturer like EBR was facing to survive. EBR will continue to honor warranties and provide parts to their current dealers and owners of their motorcycles.
In January 13, 2016 in a court ordered auction, Liquid Asset Partners located in Grand Rapids, Michigan bought all the assets (intangible and manufacturing assets) of Erik Buell Racing for about 2 million. At that time I interviewed CEO of Liquid Asset Partners Bill Melvin who told me “I believe Erik Buell Racing has established themselves as one of the premier motorcycle manufacturers in the world and has strong potential as a viable business”
It is clear that Liquid Asset Partners has pulled the plug and doesn’t wish to continue to financially support EBR in a market with so many headwinds. Today, Erik Buell states that he will continue to review strategic alternatives with interested investors regarding production operations.