Fresh off the moto-press newswires, we get word that Hudson Valley Merchandising LLC, the merchandising arm of Orange County Choppers, has sought protection in bankruptcy court under Chapter 7 of the US Bankruptcy Code.
Listed as having $1.12 million in assets and $1.44 million in debts, Hudson Valley Merchandising LLC will be given a trustee by the court, who will then likely dismantle the company and its assets in order to make the company’s creditors as whole as possible.
For those not familiar with the intricacies of bankruptcy law, Chapter 7 differs from the more well-known Chapter 11 of the Bankruptcy Code in that it almost always signals the end of the company filing for protection.
However, there is some discretion given by the court to the trustee, who can allow for the business to continue with operations, if it looks like the continuation of the business could bring more income into the company’s creditors (similar to what we saw with the Moto Morini bankruptcy).
Considering the demand for Orange County Chopper merch is probably at an all-time low right now, especially after the show American Chopper was taken off TV, OCC itself faced foreclosure, and Paul Teutul Sr. was named in an illegal steroid ring, we imagine the trustee will simply break apart Hudson Valley Merchandising LLC and sell-off its business assets.
Parent company Orange County Choppers Holdings did not file for bankruptcy in this action.
Source: Motorsports Newswire