Core Viewpoint - Motos America Inc. has filed for Chapter 11 bankruptcy to address corporate-level debt while ensuring its subsidiary dealerships continue to operate normally [1][2][3]. Group 1: Bankruptcy Filing - Motos America Inc. filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on December 31, 2025, in the United States Bankruptcy Court for the District of Utah [1]. - The filing is intended to manage corporate-level debt and related issues following a challenging period in 2025 [3]. Group 2: Subsidiary Operations - The subsidiary dealership entities of Motos America have not filed for bankruptcy and will continue to operate without interruption [2][4]. - Dealerships will maintain their operations, serve customers, and uphold relationships with trade creditors and key vendors as usual [2]. Group 3: Financial Support and Future Plans - Motos America has secured debtor-in-possession financing to ensure adequate liquidity during the Chapter 11 process [2]. - The company plans to present a reorganization plan to the bankruptcy court in the coming weeks, aiming for improved stability and a stronger corporate structure [3].

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]