Touratech Files for Bankruptcy
This past week, industry adventure motorcycling giant, Touratech, which provides motorcycle products such as gear, parts, and accessories, has filed for bankruptcy. The bankruptcy is applicable to their Germany operation only.
Touratech USA has stated publicly this does not affect the United States operation which is independently owned and that parts production in Germany will remain unaffected. Other independently owned operations have made similar statements publicly.
Touratech did make clear in their press release that salaries have been paid for their over four hundred employees. Their bankruptcy is a “reorganization” or “restructuring” which in Germany would be comparable to a Chapter 11 in the United States for businesses or a Chapter 13 for individuals. Meaning the company will continue to operate and attempt to reduce its overall liabilities based on their current financial situation.
It should be noted that while insolvency is a form of bankruptcy, it is not the typical bankruptcy that consumers are used to where they have no assets and filed for bankruptcy in order to “wipe-out” their debt. That is known as a Chapter 7 bankruptcy in the United States.
Touratech is based in Niedereschach, Germany and the financial issues seems to have resulted by building a new and larger facility. The new facility cost approximately twelve million in U.S. dollars.
Building the new facility resulted in delays and slowed down production, ultimately reducing sales and cash flow. However, Touratech is confident this will make them financially stronger in the near future and will even result in additional jobs being created while keeping current employees.
Because of an increase in the market of adventure motorcycle riding, in order to keep up with demand, Touratech had to expand. It is that expansion that ironically enough caused the financial stress.
Touratech AG was founded in 1990 by Herbert Schwarz and Jochen Schanz, there idea based on their experiences on motorcycle travel and adventure.
Good luck to Touratech as they hopefully come back bigger and stronger.
Following Updated 12/15/17
It seems that Touratech ready to get out of bankruptcy thanks to a new investor. The deal may be finalized before the end of January 2018.
Alexander Hernandez, Esq.
Alexander Hernandez represents clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents.
(904) 712-5565 or (305)-688-LAWS (5297).