Apr 15, 2015
EAST TROY, Wis. – Erik Buell Racing (EBR) has ceased operations and gone into receivership, and is seeking state protection similar to bankruptcy, according to a published report.
“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,” Buell said in a statement to the Milwaukee Journal-Sentinel.
EBR was a follow-on to Buell Motorcycle Co., which was owned by Harley-Davidson Inc. for more than a decade before Harley dropped the brand in 2009.
The company is closed for now, Buell said, and is seeking protection under a state statute which is similar to federal bankruptcy law. Attorney Michael S. Polsky will be the court appointed receiver at the company’s request. Bids will be solicited for the company as part of the Chapter 128 process, with the winning bid to be determined by the court.
EBR started by producing hand-built $40,000 and was adding the mass-production 1190RS superbike with a price tag closer to $19,000.
Buell invested his own money into the new venture, the in July 2013, Hero MotoCorp., the largest motorcycle manufacturer in India, bought a 49.2 percent stake in the company, which had 126 employees.
“To say this setback is a disappointment does not begin to express what I feel right now,” Buell said. “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.”