Gas Gas Files for Bankruptcy

Google+ Pinterest LinkedIn Tumblr

Perhaps already a reflection on the waning popularity of the brand, but the slow-to-break news this week is that Spanish motorcycle brand Gas Gas has filed for bankruptcy.

The news comes after an earlier effort by the Spanish company to try and reconcile its debt of roughly €30 million, and to restructure its business to be more profitable.

With a last-minute deal between the shareholders falling through, Gas Gas had no choice but to file with the Spanish courts.

Similar to the process currently involved with Erik Buell Racing, a trustee will be appointed to Gas Gas, who will then try and sell the company for the highest price possible.

Since February, the Gas Gas’s yearly production figure of 9,000 units has been quite less, as production has been halted while the company figures out its financial position, reportedly due to disagreements made by the company’s various stakeholders.

According to some sources, there are already several would-be buyers for Gas Gas, though A&R takes those reports more as wishful thinking than actual fact.

This news also means that Spanish brand Ossa has halted work, and is up on the chopping block, as the two Spanish companies merged in January 2014, with Gas Gas essentially absorbing Ossa into its operations.

Time will tell what will happen to the Gas Gas brand, which just last year acquired the old BMW-owned engine designs from Husqvarna before it sold to KTM, and seemed set to develop interesting new models.

Source: Gas Gas, Enduro360, & MotorpasionMoto