Erik Buell Racing Files for Bankruptcy…
Erik Buell Racing has filed for bankruptcy protection and closed its East Troy Wisconsin plant. Over 120 employees have been released and production has been halted.
Buell’s 1190RX and SX models, though well received, have not been high-volume sellers, and despite a $25 million dollar investment from Hero Motorcycles of India, it would appear Buell was unable to sustain their current model.
The Milwaukee Journal Sentinel reported that Erik Buell Racing has filed for a little-know form of Bankruptcy under Wisconsin State law know as Chapter 128 protection. This would indicate that the company has more debt than it can handle but intends to repay, and requires a structured plan to allow them the time to do so. It would also indicate that there may be hope for another revival in the future.