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Premium U.S. motorcycle brand files Chapter 11 bankruptcy
Yahoo Finance· 2026-01-02 18:33
Industry Overview - The global motorcycle market size was $71.92 billion in 2024 and is projected to grow from $75.82 billion in 2025 to $119.09 billion by 2032, exhibiting a CAGR of 6.7% during the forecast period [1] - The U.S. motorcycle market is expected to reach an estimated value of $8.76 billion by 2032, driven by increased year-on-year sales volume and consumer interest in recreational and power sports activities post-pandemic [2] Company Specifics - Motos America, a motorcycle dealership group based in Salt Lake City, filed for Chapter 11 bankruptcy protection on December 31, 2025, operating a network of 13 premium motorcycle dealerships across several states [4] - The company features luxury European brands such as BMW Motorrad, Triumph, Ducati, Royal Enfield, and Vespa, and was formed via a reverse merger in late 2021 [5] - Motos America faced severe liquidity distress after losing a $3 million deposit to Prime Capital Ventures in an alleged fraud scheme, which halted a planned $15 million credit facility [6] - High inventory financing costs and the failure to secure a $12 million financing round were cited as factors leading to the company's restructuring [7] Market Challenges - Rising interest rates have sharply increased inventory-floorplan financing costs for motorcycle dealers, putting pressure on cash flow and making it harder to carry expensive, slow-moving premium models [3] - Most dealer floorplan loans are variable-rate, meaning financing costs rise quickly when interest rates increase, even if unit sales remain steady [3]