The fate of Erik Buell Racing remains in limbo despite having already agreed with Hero Motorcycles to sell of its consulting projects with the Indian motorcycle company for $2.8 million. That represents only a small part of EBR’s overall business so a majority of the company remains without an owner. That will likely change after a new auction date has been set to finally determine the fate of EBR.
The auction for the remaining assets of EBR has been set for August 5, 2015. If the past auction was any indication, the hope is that a buyer will finally buy the entirety of Erik Buell Racing and not break it up piece by piece. The latter scenario occurred when Hero Motorcycles’ bought out its existing tech and development projects with EBR. But what everyone’s waiting for is for the whole EBR pie to be sold so everyone can finally know what’s going to happen to the American motorcycle manufacturer.
There’s no telling what company will step up to the plate to buy Erik Buell Racing. There have been rumors circulating that Polaris Industries, which has a history of quick-trigger acquisitions in the bike industry, will add to its growing list of purchases by buying Erik Buell Racing.
Given how much shopping Polaris has been in over the past few years, it’s not unreasonable to think that the company will make a run for Erik Buell Racing and set it up as its horse in the ever-competitive American sports bike market. Polaris already counts Indian Motorcycles and Brammo as its latest acquisitions. It would definitely make sense for the company to use Indian Motorcycles as its cruiser and tourer platform to complement what it can do with Erik Buell Racing should it win the auction on August 5, 2015.
Nothing will be set in stone until the end of the auction so until then, all we can do is wait and see what will happen once the hammer is slammed.
Continue reading to read more about the new auction date for Erik Buell Racing.
The fate of Erik Buell Racing will be decided on July 21, 2015 when the shuttered company goes up for auction. According to a post on its Facebook page, the sale of the company’s assets will be done through a bidding process between a number of potential buyers. No details were given on where the bidding will take place, only that it will be done at an event “managed by the receiver.”
Once the winning bid is attained, the legal court will still have to decide on whether to approve the bid or not on July 23, 2015.
EBR also clarified that the sale will be comprised of assets in large lots. What this means is that anybody who makes a bid for the company would be bidding on a number of EBR-owned properties, including unsold motorcycles, leftover parts inventory, and intellectual property. These properties have been grouped together with the idea that it can not only meet the company’s debts to its creditors, but also open the possibility, small as it may seem, of the new owners reviving the brand altogether.
That scenario is what everybody, including myself, is hoping for. But there’s also the possibility that bidders only purchase the company’s basic assets, which would make it more difficult to see EBR return as a company. Hopefully, that scenario doesn’t happen, but we all know that these auctions can go in so many different ways.
The good thing is that we’ll know soon enough what happens to Erik Buell Racing. Cross your fingers that whoever ends up winning the bid will see that it’s worth it to bring the company back from the grave.
Continue reading to read more about the fate of Erik Buell Racing.