Last Evening I was made aware that MAG (Motorsports Aftermarket Group) were in financial trouble. MAG also owns several other Motorsport performance and accessory brands (Renthal Americas, Tucker Rocky, Performance Machines, Roland Sands Designs, Vance & Hines, J&P Cycles, Kuryaken, Velocity Holdings Company, Velocity Pooling Vehicle, DFR Acquisition, Ed Tucker Distributor, MAG Creative Group, MAGNET Force, Motorcycle Superstore, Motorcycle USA, Mustang Motorcycle Products, Ralco Holdings and Tally Holdings)
The biggest disappointment with this news is the possibility that we (the motorcycling community) could loose Vance & Hines, Kuryaken, Roland Sands Designs and Mustang Motorcycle Seats. I personally have had Vance and Hines pipes on all my motorcycles, it'll be hard to replace that loyalty if the worst happens.
On November 15th 2017 MAG and its subsidiaries filed for
bankruptcy relief from creditors. Its Chapter 11 petition allows the group to
reorganize under debtor-in-possession financing.
J&P Cycles is one of 19 individual brand names also filing
Chapter 11 bankruptcy as part of the plan. Motorsports Aftermarket Group
purchased the iconic business more than a decade ago.
J&P Cycles was founded in by John and Jill Parham in 1979. John and Jill Parham handed over management of the company back in 2011 to their son Zach who was named Vice President and General Manager. This obviously hasn't worked out the family.
The bankruptcy move allows MAG to eliminate about $300 million USD
in debt.
MAG’s businesses will apparently continue to operate unaffected,
and the company has sufficient liquidity to fund operations.
CEO Andrew Graves said. “Customer service and sales will continue;
employees will receive wages and benefits as before; and vendors and suppliers
will be paid in the ordinary course of business going forward.” “MAG is very
appreciative of its employees who have remained committed and professional
during what has been a challenging few years,” Graves said. “We are grateful to
our valued vendors and suppliers who have remained our partner, and we thank
our customers who continue to trust and rely on us.”
The company said it expects to re-emerge from bankruptcy in the
first quarter of 2018. I guess time will tell if they can restructure and survive.
I personally avoid purchasing products
from companies that are in bankruptcy protection. Companies in bankruptcy protection
often change their return policies on a whim; they often have limited stock and
fail to honour warranties. Why would you want to subject yourself to that when
there are so many alternatives!
I should point out that in 2015 I visited J&P Cycles in Anamosa, Iowa before they moved to Kentucky and Texas. It was a huge facility with an even better motorcycle museum, a testament to a once very powerful and industry giant.
I really hope they can consolidate and
pull themselves out of this mess. Good luck to MAG specifically J&P Cycles, Vance and Hines, Kuryaken and Mustang Seats.
Tank
Vice President
Roughnecks MC
Toronto Chapter
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