Erik Buell Racing (EBR) is an American motorcycle sport company which produces street and racing motorcycles, based in East Troy, Wisconsin, USA. The business entered receivership in April 2015. After two previous attempts, the business remnants were sold in January 2016 to Liquid Asset Partners (LAP), an American organization specializing in the purchase and liquidation of failed businesses. Liquid Asset Partners kept the company intact and motorcycle production resumed on March 1, 2016, the first new model rolling out on March 17, 2016.
HistoryErik Buell founded Erik Buell Racing in November 2009 following the shutdown of his previous company, Buell Motorcycle Company, by parent company/majority stakeholder Harley-Davidson. Erik Buell Racing's first efforts were directed toward production of complete, race-only motorcycles and parts based on the Buell 1125R production model, under license from Harley-Davidson, to support privateer racers.
On July 1, 2013, Hero MotoCorp, a motorcycle manufacturer based in India, acquired 49.2% stake in the company for $25 million. The two companies announced that EBR will distribute Hero motorcycles and scooters in North America starting in the summer of 2014.
Bankruptcy and receivershipOn April 15, 2015, Erik Buell Racing filed for receivership, with a reported $20 million of liabilities, and ceased all operations including closing down their website.
On August 7, 2015, it was announced that Bruce Belfer, an engineer from New Jersey with a background in metal fabrication, had agreed to purchase Buell's manufacturing assets for $2.25 million, while Hero MotoCorp. of India paid $2.8 million for Buell's consulting business. Belfer stated his intention to work with company founder Erik Buell to re-establish the business as soon as possible, including a manufacturing base in East Troy where Buell previously employed 130 people producing high-end motorcycles.
The deal failed as Belfer was unable to secure financing for the $2.25 million purchase price, and the official receiver filed to re-sell the assets in a new round of bidding, so the remnants of Erik Buell Racing returned to auction on December 10, 2015. The auction had no bidders, and a move where the court-appointed receiver sought to sell the assets by accepting a pre-emptive offer from a private liquidation-company specializing in breaking-up company remnants was blocked by the judge, to allow more time for any potential new buyers to prepare their submissions, re-scheduling the hearing for early January 2016.
In January 2016, the remnants of Erik Buell Racing were sold to Liquid Asset Partners for just over $2 million, with the proceeds going to creditors (including Mito Tech and Porsche Design Group) and to former employees for unpaid wages. Liquid Asset Partners stated an intention to try to find a buyer experienced in motorcycle manufacture to re-establish the business. Liquid Asset Partners has kept the company assets intact and indicates they will continue to do so until a buyer or major investor can be found. Motorcycle production resumed on March 1, 2016 and the first new motorcycle, a limited edition "Stars and Stripes" themed 1190RX rolled off the assembly line on March 17, 2016. EBR's website indicates that the company is establishing a new dealer network to sell the newly produced motorcycles.