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Motorcycle Aftermarket Groups File for Chapter 11

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Yeeha! Stephen

Yeeha! Stephen

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Huge sign of the times for the struggling motorcycle industry.:eek2:


"Chapter 11 for Brands


To restructure their debt, many of the Motorcycle Aftermarket Group's are filing for relief under Chapter 11, Title 11 of the US Code – better known as Chapter 11 bankruptcy.


The companies filing for Chapter 11 are the following: Renthal Americas, Tucker Rocky, Performance Machines (which includes Roland Sands Design), Vance & Hines, J&P Cycles, Velocity Holdings Company, Velocity Pooling Vehicle, DFR Acquisition, Ed Tucker Distributor, Kuryakyn, MAG Creative Group, MAGNET Force, Motorcycle Superstore, Motorcycle USA, Motorcycle Aftermarket Group, Mustang Seats/Motorcycle Products, Ralco Holdings, and Rally Holdings.


By having these companies file for protection under Chapter 11, the new owners will be able to more rapidly turnaround the company’s overall business, and return to profitability."

The MAG Creative Group is also parent to Answer Racing, Malcolm Smith Racing, Bike Master, Progressive Suspension, Pro Taper, First Gear, Speed & Strength, and Biker's Choice.... among others.


Many of these companies are heavily involved in the cruiser and dirt bike markets. Both are declining markets evidenced by the demise of Victory Motorcycles and Suzuki Motocross Racing.


Kinda scary. We use a couple of these companies often, like First Gear, Motorcycle Superstore and Tucker Rocky. Tucker Rocky is a major player in the distribution of aftermarket items to the DFW area motorcycle shops. Especially tires!

http://www.roadracingworld.com/news...-bankruptcy-to-eliminate-300-million-in-debt/


Maybe I'd better start saving for that driverless electric car!:trust:


SS
 
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It's just another sign of the ever changing times.

How long can it be before a complete motorcycle can be ordered through Amazon? Ebay, CraigsList and CycleTrader have been squeezing the used market for years. The brick and mortar ship sailed long ago when it comes to gear, parts and accessories.

I don't see how old style retail has stayed around this long.
 
To be fair, most of those companies were gobbled up into a big conglomorate under a private capital group. What often happens is a private capital group will buy companies, leverage some debt, clean up the balance sheet a bit, pump the revenues some and cut it loose.

See also why Mitt Romney took heat for Bain Capital. Same thing. Buy, pump, dump, make a few bucks.

I'm not against it, but know that its not healthy for a company to be sold to a private equity group in most cases.
 
That sucks. I know several sales reps and a few others than work for Tucker Rocky. TR has long supported dirt biking in TX. I'd really hate to see them go. They supply a ton and donate a lot to the local Enduro circuit in the way of prizes jackets for the classes, etc....

Some of the other brands I use, but not all. My gear has been holding out for a last several years. I have bought stuff here and there, but mostly on close out. I guess I'm not a good consumer. I stopped going to the dealer to buy gear once I realized that they all have to order what I needed and mostly only stock the lower end of the spectrum when it comes to dirt bike gear. To some extent the same can be said for OEM stuff. I do a lot of my wrenching and I can order OEM from the online source and spend a hour and a half of travel and a half tank for gas each way to order and pick up parts. They show up to my door for usually less than the dealer can order and ship them out to me. They are quicker as the dealer does not have to get it and forward ship it me. It's drop shipped to me.

The internet, connectivity, and way we use it is defiantly changing the landscape for many markets. It has changed the way I work in the last several years drastically and will likely continue to influence the way we get things for our motorcycles and even maybe the way we buy or bikes.
 
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weekend_warrior said:
That sucks... TR has long supported dirt biking in TX. I'd really hate to see them go...
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The story write up claims the businesses will be stronger, and the employees are staying and will be better off.
I've been on the "rotten" end of one of these shake-ups that promised no lost jobs (way back when Bridgestone bought Firestone who bought Western Auto) and I wonder how much propaganda that claim is.

Seems like someone pushed that first domino and here we go. https://www.asphaltandrubber.com/?s=suzuki+motocross+factory+support&submit=Search
 
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Even conglomeration can't save a company past a certain point. As we all know, the motorcycle industry is deep in the crapper right now. 15 years ago, there were approximately 2.5 times more new bikes being sold annually than there are today. The death of AMA Superbike was the first big harbinger, though most of the blame was focused on DMG at the time. Suffice it to say that unless the younger generation gets interested in something other than Doritos and video games, it's only gonna get worse.
 
:tab I don't think it is merely a lack of interest that is the problem. As I mentioned in another post recently, the price of new bikes has been skyrocketing for the last 15 years. There are countless studies that have be done showing that incomes for the middle class have not kept pace with inflation. The simple reality is that for many people, bikes are becoming a luxury they simply cannot afford. I haven't bought a new bike since 2001 (the sole exception being a dirt bike for the kids that I got for a SMOKING deal). Every bike I have owned since then has been purchased used. I don't buy tons of accessories and farkles either. I buy the basic stuff and stick with it. I buy good gear, but then I hang on to it for 5-7 years at least. I'd love to have some of the new bikes that have been coming out in the last few years, but they are way out of the range of what I can realistically afford. So I wait and buy them used, preferably already outfitted with the desired accessories and farkles.

:tab Despite what our media and government want us to believe, there has been no recovery. For main street, things have only continued to deteriorate. The number of big retailers that are going under or barely treading water is huge. I doubt things are going to be getting any better in the near future unless we make some major changes in our government policies. The odds of that happening seem pretty slim. So... :suicide:
 
After a read this is a simple equity for debt swap protected by chapter 11. Essentially the current people running the business are selling it to the people who have loaned them money. Some sleazy real estate guys used this method to wipe debt off the books in the 90s. In this case 90% of the lenders have agreed to the terms, and they will take over the company rather than restructuring debt.

As for the rest of the nostalgia train, technology is a significant life disruptor in many ways, not just business and motorbikes. My grandfather grew up on horseback and moved to motorcycle because they were better. Either surf the wave or drown under it. The solution to a changing world is no farther away than a mirror.
 
I thought I was ordering tire from Motorcycle Superstore. The bill was to JP and sent from JP, is MCSS just a clearing house in sorts that ships from other warehouses? One other thing, I can get tires from Georgetown Power sports for about the same price as online if they have the brand and size. I bought Anakee 3's for less than on line from GTPS. And they mounted them if you buy from them and take the wheels to them. Guess local dealers are starting to get competitive.
 
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Now I am getting E-Mails from "Rider Magazine" selling bike stuff and clothing. I don't get it they have advertisers that pay to be in magazine. It is my favorite Mag. because of Clem. I think it is a beginning of a larger consortium beginning to compete with local shops that have cut corners in a slower bike market. Maybe through a chapter 11. They have to take up slack bike sales leave. Cycle gear has much more brands now with better prices. The local apparel bike shop in South Austin has very good prices. Wish they had a store north. Go when I can.
Does anyone else notice tire, battery and oil stuff price drops at the local shop? I know there are some good bike sales, but used bikes are low and low mileage.
All I'm saying is something is stirring. Even online freight is nearly always free now. Sign of a saturated market?
Just read Superbike Planets article, interesting. Expecting 2018 to be more prosperous.
 
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Meriden said:
After a read this is a simple equity for debt swap protected by chapter 11. Essentially the current people running the business are selling it to the people who have loaned them money. Some sleazy real estate guys used this method to wipe debt off the books in the 90s. In this case 90% of the lenders have agreed to the terms, and they will take over the company rather than restructuring debt.

As for the rest of the nostalgia train, technology is a significant life disruptor in many ways, not just business and motorbikes. My grandfather grew up on horseback and moved to motorcycle because they were better. Either surf the wave or drown under it. The solution to a changing world is no farther away than a mirror.
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Nailed it.

And I call a little BS on the internet destroying local retailers & I'll use Straight Line/KTM of N Texas as an example. Those guys know their stuff, stock everything, offer no nonsense returns and are happy to dispense knowledge & spend time with the customer. Last time I went by I had to wait in line to check out on a Tuesday lunchtime!

Point being, there is room for B&M in the internet age, it's just that the old "we can order that for you" isn't going to cut it.
 
I have bought several tires from central TX powersports for less that i could online. They always aim to please for me

Sent from my SAMSUNG-SM-G870A using Tapatalk
 
Sears going under makes me sad. IIRC all of Sears Canada went belly up. My bet is we are seeing the last holiday season with our old friend Sears. It's nostalgia, just like if Kawasaki went under I would be sad to see it go. For Sears its partly Amazon but when I walk in their stores now it's just depressing and that does not sell.

Bikes and bike aftermarket may have lost a lot of millennials but it's not going away. The market has boomed but I don't expect a bust. It's just too unique an experience to think it's going away.
 
SL350 said:
Sears going under makes me sad.
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Raped by a Hedge Fund and a lovely example of capitalism run amok. Luckily Trump & the GOP are writing new laws to help the likes of Lampert get out from under their onerous tax burdens & ease what regulations exist to stop this kind of play. So they can spread the wealth you know.

https://nypost.com/2017/04/22/sears-owner-has-milked-iconic-retailer-dry-analysts-say/

(Sorry for the NYPost link, not exactly a fantastic news source but it was the 1st one that came up)
 
philipbarrett said:
Nailed it.

And I call a little BS on the internet destroying local retailers & I'll use Straight Line/KTM of N Texas as an example. Those guys know their stuff, stock everything, offer no nonsense returns and are happy to dispense knowledge & spend time with the customer. Last time I went by I had to wait in line to check out on a Tuesday lunchtime!

Point being, there is room for B&M in the internet age, it's just that the old "we can order that for you" isn't going to cut it.
Click to expand...

SLM is a great dealer. The internet has changed the way they (SLM) do business for sure. Do you notice that SLM also has a Ebay store and if you look in the back they do a lot of shipping. They do internet sales to keep up sales as well. I really like the place, but have a hard time convincing myself to drive 1.5 hrs to pick up stuff (at that is with no traffic!). The nature of the beast for me and where I'm located. If I need something and they have it, sure I'll make. If I'm in the area yes. I have called SLM and had them ship stuff to me, but its usually just as fast with some of the others and I look at the parts fiche online. I spread the dollars around pretty well.

The "We can order that for you" gets pretty old.
 
SL350 said:
Sears going under makes me sad. IIRC all of Sears Canada went belly up. My bet is we are seeing the last holiday season with our old friend Sears. It's nostalgia, just like if Kawasaki went under I would be sad to see it go. For Sears its partly Amazon but when I walk in their stores now it's just depressing and that does not sell.

Bikes and bike aftermarket may have lost a lot of millennials but it's not going away. The market has boomed but I don't expect a bust. It's just too unique an experience to think it's going away.
Click to expand...

I hate to see Sears go to the way side. I have a ton of their stuff. Tool boxes tools etc. Part of the issue might be the sky high rent of shopping malls. Wonder if they are next?
 
Both the wife and I are getting used to the "internet order, store pick up" model. I've bought everything from braided brake lines for the RT at Wild West to my last Chromebook and Galaxy7 that way. It's a lot better than having someone leave a $500 package on your door step for a few hours and the customer service counter is faster than waiting on a Blue Shirt to tell you it's not in stock at that store. When I was a kid we used to order from the Sears catalog for pickup all the time.
 
Windmill said:
I thought I was ordering tire from Motorcycle Superstore. The bill was to JP and sent from JP, is MCSS just a clearing house in sorts that ships from other warehouses? One other thing, I can get tires from Georgetown Power sports for about the same price as online if they have the brand and size. I bought Anakee 3's for less than on line from GTPS. And they mounted them if you buy from them and take the wheels to them. Guess local dealers are starting to get competitive.
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I noticed that the last time I was on their website. "Powered by J&P Cycles".

I think J&P has absorbed MCSS and is selling off what ever stock they have though their website. I was looking at tires on the site and looks like they are close to selling everything they have left.
 
kickstand~prophet said:
I hate to see Sears go to the way side. I have a ton of their stuff. Tool boxes tools etc. Part of the issue might be the sky high rent of shopping malls. Wonder if they are next?
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Read post #15. Sky high rents it is, as the hedge fund manager that bought Sears sold off the leases to a company he owns and then leased the space back to Sears at usurious rates.

He'll also benefit mightily from Trump's tax proposals.
 
Inefficient businesses come & go. That's the nature of capitalism, smarter & more efficient business are born & replace the old outdated models. Business Darwinism. Sears has long been struggling, their business model is way outdated, & their goods are now mostly made in China (no longer American made).

I can sure do without the blabber about "capitalism run amok" & the BS about Trumps tax proposal. I'd suggest reading more Rand, Hayek, von Mises, & less Marx.

https://mises.org/about-mises/what-austrian-economics

Any money that business are taxed, comes from the customers themselves. If Sears has taxes raised 10%, they pass on that cost to consumers (you & I). Meaning people will buy less. Lower business taxes means lower consumer costs, & more purchasing. Business don't exist to provide an ever increasing tax pool for political manipulation, they exist to make a profit for investors. If they can't make a profit, investors will pull out & put their money where it will make money.

If people dont like keeping more of their own money, lower consumer costs, & having businesses compete for customers, there are plenty of other countries that follow socialist ideals, you could move there.
 
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Well, James, the guy that owns El Campo Cycles (Suzuki, Honda, Polaris and formerly Victory) says he sells way more lawn equipment and UTVs than bikes. The bikes collect dust on the showroom and the zero turns and Polaris UTVs make him money. :D

I order stuff off the net. When you live so far from anywhere, it's just more convenient. I did my first store pick up through Walmart a while back. Okay, but it's 20 miles to the nearest Walmart. But, I'm going to Columbus a lot anyway. We eat out there some and going to pick up a package is good reason to eat out. :D
 
Jack Giesecke said:
Well, James, the guy that owns El Campo Cycles (Suzuki, Honda, Polaris and formerly Victory) says he sells way more lawn equipment and UTVs than bikes. The bikes collect dust on the showroom and the zero turns and Polaris UTVs make him money.
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That is another piece of the puzzle. What used to be Columbus Cycles is now Columbus outfitters and motorcycles make up a small percentage of their sales. There are a lot of alternatives to motorcycles, most of them easier to use for a newbie. I'd happily trade my wife's DR200 for something like a Honda Rancher.
 
philipbarrett said:
Read post #15. Sky high rents it is, as the hedge fund manager that bought Sears sold off the leases to a company he owns and then leased the space back to Sears at usurious rates.

He'll also benefit mightily from Trump's tax proposals.
Click to expand...

https://www.google.com/url?sa=t&rct...ances-2017-1&usg=AOvVaw0bhlmPSFRSYaPRYvfLSiVb

Here is another one. Man selling the Craftsman brand off to Stanley???:loco: The only reason a bunch of us go into Sears. Looks like Sears won't be around too much longer. Sad days indeed.
 
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