This looks like the end of the road for motorcycle manufacturer Gas Gas, as the Spanish brand entered into liquidation today, after its bankruptcy proceedings failed to find the €30 million necessary to pay the company’s creditors.
The news is timely, as today interested parties in owning Erik Buell Racing (or parts of it) will be placing their bids on the similarly wayward company.
Back in Spain though, the news is troubling for Gas Gas fans, as the company’s assets will be liquidated, with the hope of raising enough money to pay-off the company’s creditors.
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.
If you thought the times are tough here in the United States, be thankful that you don’t live in Spain right now, as the Iberian country hovers around 20% unemployment for the general population, with 50% unemployment for the country’s 20-something crowd. Indeed, all the Mediterranean states, save for France, are on the verge of economic collapse. It’s a scary time.
Therefore, it wasn’t surprising to hear last year that the rebirth of the Ossa brand saw the Spanish dirt bike company using the available production capacity in the struggling Gas Gas factory. It seems that manufacturing partnership has now gone a step further, with Gas Gas and Ossa formerly merging, so as to better take on the rough economic landscape.