erik-buell-racing-logo

The situation around Erik Buell Racing is rapidly becoming comical, as the American motorcycle brand is headed back to auction, after its sale to Bruce Belfer failed to close.

The Milwaukee Journal-Sentinel reports that Erik Buell Racing will go back to the auctioning block on December 10th, because Belfer was unable to secure financing on his $2.25 million purchase price for Erik Buell Racing.

As has become the trend among Buell-loyalists, Belfer blames Hero MotoCorp for the failure of his deal to close. “They (Hero) went in before we closed and started to remove things, to the point where an entire warehouse was moved,” Belfer said to the Milwaukee Journal-Sentinel.

“I’ve done some tough deals in my career. But this was, in my opinion, intentionally complicated…” he added.

Readers will remember that Hero MotoCorp purchased Erik Buell Racing’s unfinished consulting consulting work and materials for $2.8 million, ahead of Belfer’s deal to buy the rest of the company.

It therefore wouldn’t be surprising to hear that the banks backing Belfer were securing their loan on assets that Hero ultimately ended up owning or taking. As a result, if the banks no longer had the collateral to secure their loan with Belfer, it would explain why they pulled the financing from him at the last-minute.

Despite all this, Belfer says he intends to bid on Erik Buell Racing again, at the December 10th date.

Of course, this gives another person or business the opportunity to bid against Belfer. We would guess though that the second auction price will be considerably lower than the first, making this perhaps a silver lining in the situation for Belfer and Erik Buell Racing.

We’ll know more in a couple weeks’ time.

Source: Milwaukee Journal-Sentinel

  • Paul M. Fenn

    I love the way business entities like Buell that carry with them the still-beating hearts and caring souls of their founders and/or employees get bought and sold like giant frozen tunas in the Tokyo fish market by vainglorious men who believe they have imagination. “I bought an ailing motorcycle brand today, a piece of living history. Wish I could remember the name. Pass the champers.”

  • paulus

    Somewhere, there is a warehouse full of rim mounted disks waiting for a new home!

  • The Blue Rider

    That’s what you get when you sign a deal with the Indian Devil. Paraphrasing the old saw about racing: “How do you save a little money partnering with India? Start with a lot of money.”

  • Lance Boyle

    Seems to me EBR a mouldering corpse at this point. Where is the value?

  • paulus

    Dig a little deeper, check the back articles. Hero are not the bad guy in this fiasco.

  • The Blue Rider

    No, they’re not. The one constant factor in all of Buell’s tragedies is… Erik Buell. And I’m fresh out of Flucks to give on that score.

    However, as a former employee of a company that’s now on its *second* trip down the Path to Ruin after attempting overseas outsourcing and deal-making, I say it was a terrible idea to begin with and he should have known better. Everybody should. I don’t care how many Billions and Billions of customers that market has, unless you have the resources of HD to soak up the overhead of dealing with that place, it’s a devil’s bargain, in which the American worker gets consistently reamed the hardest in the end.

    Maybe I’ll put in a bid. I’ve heard they have a bunch of unsellable bikes just sitting around. Maybe I’ll score a bunch of throwaway track bikes for $50 plus cost of transport… *wavy dream transition*

  • Ducati Kid

    LB,

    Could be this …

  • Scenic Highways

    Perhaps it is a bad omen to have a corporate logo that is staring at the ground.

  • Fingers crossed for KTM

  • thumper702

    I made this comment regarding the previous Buell fiasco: At this point, what potential customer, with even half a brain, would ever consider buying a new Buell motorcycle?

    With the last EBR motorcycles costing as much (if not more) than offerings from BMW, Ducati, KTM, Aprilia, etc., I just don’t get why anyone would risk buying a bike of questionable quality, future serviceability, and potential resale value.

  • Jorge

    Great design, the kind that makes passion rule over logic, modern Buells have none. In the very early days, Buell had a fun and goofy look that was the result of folding a motor into a frame that were never meant to be. What followed however were unattractive ideas always falling short of better.