ARTICLES
Meyers, a former aerospace executive, told Dealernews that the
bankruptcy will allow the company to trim some of its massive overhead,
eliminate unused inventory and equipment, pay off creditors, move out of its
existing building and reorganize into a smaller, more tightly run operation.
“We do have very good plans to reorganize and continue the manufacturing of
what we consider to be some of the best motorcycles out there,” says Meyers,
who moved to Texas from Montana where he owned an IronHorse dealership.
The company’s COO, Jeff Long, adds that the company has long-term plans to
continue building bikes by using components from outside vendors rather than
try to manufacturer most of each bike in-house. “We’ll start off small,” Long
says. “We’re going to continue to do R&D on bikes and get them out in front
of the public and see what the public is interested in.” The company will be
ready when the industry bounces back, Long adds.
Before the bankruptcy filing, American IronHorse Acquisitions sued Textron,
claiming that it was selling a supply of repossessed bikes directly to American
IronHorse dealerships. The suit also names Renegade Motorcycles, a Texas
dealership formerly known as Iron Horse of Texas, claiming the store breached
its dealer agreement with the company.
Meyers adds that the bankruptcy is the result of Textron pulling out of a
five-year loan agreement, thereby leaving IronHorse with no way to finance its
operations. This is in addition to the charges that Textron flooded the market
with severely undervalued motorcycles.
Textron, which financed Meyers’ acquisition of the brand and equipment for
$6.7 million...By Dennis Johnson
U.S. bankruptcy judge in Fort Worth agreed to the sale of American
IronHorse Motorcycles to Scott Meyers for $6.7 million. The total cost of the
acquisition by Scott Meyers will be in excess of $8 million because it includes
liabilities in the form of warranties on existing bikes. So, it’s very good news
for all IronHorse dealers and motorcycle owners because the new IronHorse will
honor all existing warranties. Evidently, by doing so, the new owner wants to
rebuild a very tarnished company’s image. Scott Meyers is 54, a CPA by training,
a former CEO of group of defense contractors called Alliant Techsystems, and
owns 2 IronHorse dealerships in Minnesota and Montana. To run the new IronHorse,
he will move to the existing factory in Fort Worth, TX. Meyers said the purchase
is being financed by $2.5 million of his own money and a $6.7 million line of
credit from Textron Financial, IronHorse’s main lender and a unit of Textron
Corp.. - Published by Cyril Huze
bankruptcy will allow the company to trim some of its massive overhead,
eliminate unused inventory and equipment, pay off creditors, move out of its
existing building and reorganize into a smaller, more tightly run operation.
“We do have very good plans to reorganize and continue the manufacturing of
what we consider to be some of the best motorcycles out there,” says Meyers,
who moved to Texas from Montana where he owned an IronHorse dealership.
The company’s COO, Jeff Long, adds that the company has long-term plans to
continue building bikes by using components from outside vendors rather than
try to manufacturer most of each bike in-house. “We’ll start off small,” Long
says. “We’re going to continue to do R&D on bikes and get them out in front
of the public and see what the public is interested in.” The company will be
ready when the industry bounces back, Long adds.
Before the bankruptcy filing, American IronHorse Acquisitions sued Textron,
claiming that it was selling a supply of repossessed bikes directly to American
IronHorse dealerships. The suit also names Renegade Motorcycles, a Texas
dealership formerly known as Iron Horse of Texas, claiming the store breached
its dealer agreement with the company.
Meyers adds that the bankruptcy is the result of Textron pulling out of a
five-year loan agreement, thereby leaving IronHorse with no way to finance its
operations. This is in addition to the charges that Textron flooded the market
with severely undervalued motorcycles.
Textron, which financed Meyers’ acquisition of the brand and equipment for
$6.7 million...By Dennis Johnson
U.S. bankruptcy judge in Fort Worth agreed to the sale of American
IronHorse Motorcycles to Scott Meyers for $6.7 million. The total cost of the
acquisition by Scott Meyers will be in excess of $8 million because it includes
liabilities in the form of warranties on existing bikes. So, it’s very good news
for all IronHorse dealers and motorcycle owners because the new IronHorse will
honor all existing warranties. Evidently, by doing so, the new owner wants to
rebuild a very tarnished company’s image. Scott Meyers is 54, a CPA by training,
a former CEO of group of defense contractors called Alliant Techsystems, and
owns 2 IronHorse dealerships in Minnesota and Montana. To run the new IronHorse,
he will move to the existing factory in Fort Worth, TX. Meyers said the purchase
is being financed by $2.5 million of his own money and a $6.7 million line of
credit from Textron Financial, IronHorse’s main lender and a unit of Textron
Corp.. - Published by Cyril Huze