They say that first impressions last and if that’s true, employees of troubled Gas Gas certainly made quite an impression to KTM officials who visited the company’s headquarters in Gerona, Spain.
A report from enduropro has been making the rounds involving a less-than-traditional greeting officials from KTM received when it paid a visit to Gas Gas headquarters. Instead of the more traditional handshakes and welcome greetings, these employees decided to burn two stacks of tires at the main entrance. It’s a little sophomoric, but not to the point that it crosses any lines of decency.
Well, apparently, the resentment for KTM, which has expressed interest in buying Gas Gas, is real enough that a mannequin was even used to welcome the Austrian brand. The said mannequin, by the way, was displayed hanging from a rope outside one of the buildings windows with an accompanying message that read “This is not your home.”
According to enduropro, such a greeting from Gas Gas employees has happened in the past, particularly to officials of MV Agusta who reportedly went through something similar. It’s not the most civilised way to behave, but you have to give the people behind this a little bit of dap for having a big set of chutzpah to pull something off.
Manners be damned, apparently, and they’re not afraid to make their opinions known, no matter whose feelings end up getting hurt.
Continue reading to read more about Gas Gas’ rude welcome for visiting officials from KTM.
The financial problems surrounding Gas Gas appears to have no signs of abating anytime soon after the company announced its failure to renegotiate its mounting debts. With its options dwindling by the day, the Spanish enduro and motocross bike manufacturer has relented on proceeding with the liquidation of its assets.
In a letter sent to its “customers, partners and friends”, Gas Gas admitted going through numerous legal proceedings to get its house in order. It’s tried to renegotiate its debt and find investors willing to help with its financial woes. It even received a loan from the Spanish government, which is incredible considering how much the economy in Spain is struggling these days.
Yet none of those avenues ended up working for the company, forcing it to finally concede to selling its production unit, including its factory, to prospective buyers. It’s a similar step taken by Erik Buell Racing when it announced its own bankruptcy back in April 2015.
Where Gas Gas goes from here is anybody’s guess. While I’m hoping that there’s still some chance that we see the company come back, it’s become increasingly difficult to see the forest for the trees, especially when the company seems to have exhausted all of its options with little success.
The only avenue that appears to be available is to sell off its production unit, something the company said it’s going to do at the soonest possible time to “ensure a solid and sustainable long term viability of the company.”
Right now, those words are ringing hollow, but like most optimists, I’d like to believe that Gas Gas can survive this latest setback and come back in one form or another.
Continue reading to read more about Gas Gas’ latest financial setback.
Spanish motorcycle brand Gas Gas has officially called off the dogs on any attempts to save the company from doom after announcing that it has officially filed for bankruptcy.
The news isn’t as shocking as some people may think it is because the company has been in a rut for quite some time now. It’s no secret that Gas Gas has been trying to stave off this day from happening, even going so far as to completely cease production of its bikes to reconcile its debt and restructure its business to become more profitable.
There was even talk that Austrian bike brand KTMwas going to make a move to buy the fledgling company back in February 2015. Sadly, none of those talks amounted to anything, leaving Gas Gas facing the grim reality that it was indeed time to close up shop.
The scenario with Gas Gas isn’t too different from the situation with Erik Buell Racing, despite being handled by two separate bankruptcy courts in two different countries. Like EBR, Gas Gas will be given a trustee, whose primary responsibility would be to sell the company for the highest price available in the market.
News of Gas Gas’ fall also means that separate brand Ossa will also end up on the market. Since the two Spanish brands merged in 2014, both companies are in the same boat now, desperate to look for a new owner that can somehow turn the two brands around the way the current ownership group never could.
It’s not out of the realm of possibility that another motorcycle company can come in and make a ninth-inning save. If there’s something the bike industry has taught us, it’s that this type of thing can happen if the stars align.
For now, though, the flags are flying at half-mast over at Gas Gas as it now tries to come to grips with the reality that filing for bankruptcy is the only card left in the deck that it can still play.
Continue reading to read more about Gas Gas’ filing for bankruptcy.