Hi all. I saw this on jalopnik and was really surprised. Apparently Hoonigan which the late Ken Block started is $1.2 Billion in debt but is looking at restructuring and coming out debt free. How the article talked about it but, aren't there people that should have caught this way before being a Billion in debt? Makes me wonder how involved Ken Block and his wife really were.
Hoonigan files for bankruptcy citing $1.2 Billion debt
- Thread starter 97prizm
- Start date
It looks like they bought alot of companies. TSW was always a top notch wheel company from my understanding. Companies should have a financial analyst or accountant to look at balance sheets (Aren't they w10's or some such?) To see why a company is up for sale or would be a good acquisition. But holy sneike as the late Chris Farley would say. I'm surprised checks didn't bounce. A BILLION DOLLARS is alot to bev8n debt.
Another series of leveraged buyouts working exactly as planned.
Hoonigan is the new name (in 2023) for Wheel Pros, which has a dozen different aftermarket parts, wheel, and lifestyle companies in their portfolio.
Wheel Pros was bought by private equity firm Clearlake Capital in 2014. In the following decade, Clearlake Capital/Wheel Pros bought company after company using borrowed capital, saddling each balance sheet with the debt. Hoonigan was one of the companies they bough, then adopted the Hoonigan name for the parent company. Anyway, this is how you end up with $1.2 billion in debt. Now it's time for Hoonigan (formerly Wheel Pros, formerly Clearlake Capital) to file chapter 11, reorganize, and discharge all that debt through the courts.
This is how private equity works in late-stage capitalism.
Hoonigan is the new name (in 2023) for Wheel Pros, which has a dozen different aftermarket parts, wheel, and lifestyle companies in their portfolio.
Wheel Pros was bought by private equity firm Clearlake Capital in 2014. In the following decade, Clearlake Capital/Wheel Pros bought company after company using borrowed capital, saddling each balance sheet with the debt. Hoonigan was one of the companies they bough, then adopted the Hoonigan name for the parent company. Anyway, this is how you end up with $1.2 billion in debt. Now it's time for Hoonigan (formerly Wheel Pros, formerly Clearlake Capital) to file chapter 11, reorganize, and discharge all that debt through the courts.
This is how private equity works in late-stage capitalism.
Ken Block was an acquaintance, talented driver, and businessman. When the person who envisioned and possessed the drive and desire to build what he did is gone, it's unlikely that anyone can fill his (DC) shoes. I've watched the same scenario with several other very successful entrepreneurs I knew, after their passing.
RIP, Ken.
RIP, Ken.
They were always developing vehicles and doing restomod stuff. Ken turned a 68ish mustang into AWD and last year he showcased his old school Subaru Loyale station wagon. It did or didn't help that his daughter wanted to follow in his footsteps. Racing and development isn't cheap and adding extra vehicles and training isn't cheap. Rumors are that she's looking at open wheel racing in Europe and is hinting at F1, all I can say is good luck.
The comments in the following article are telling: https://www.roadandtrack.com/news/a62121632/hoonigan-backruptcy-billion-dollar-debut/
"They accomplished their mission; strip it of all value and build debts while pocketing as much $$ as possible and then throw the carcass on the bankruptcy pile."
"yup. Typical Private Equity shenanigans. Buy up a company and load it up with tons of existing debt. File for bankruptcy to avoid creditors, gut the company, sell off the assets, etc., etc."
Sad to see this happen to companies after the founder dies. My father worked for John Anderson in Gary Indiana: ANCO wiper blades. Not quite the same story, but similar ending - once proud company relinquished to just a ho hum name brand on a package.
"They accomplished their mission; strip it of all value and build debts while pocketing as much $$ as possible and then throw the carcass on the bankruptcy pile."
"yup. Typical Private Equity shenanigans. Buy up a company and load it up with tons of existing debt. File for bankruptcy to avoid creditors, gut the company, sell off the assets, etc., etc."
Sad to see this happen to companies after the founder dies. My father worked for John Anderson in Gary Indiana: ANCO wiper blades. Not quite the same story, but similar ending - once proud company relinquished to just a ho hum name brand on a package.
Last edited:
So it is just another brand that gets people to pay them to advertise for them? I thought it was some relation to Australian hooning and drifting. I see huge windsheild stickers on all sorts of bolt on mod vehicles around here.
Private equity does what is says in the name.....
Private equity does what is says in the name.....
Never heard of them before— I misread the title as hooligans!
A quick search shows a website with photos of real people looking like they are doing real work in a shop…granted their clothes are clean, but it’s better than I’d expect. As mentioned above, links are provided to all of the manufacturers they work with and/or own.
On the surface it appears to be a rather respectable website.
I see nothing about selling stickers or kitschy souvenirs, and I don’t get that vibe from it.
I've been in the automotive aftermarket my whole career, now 39 years. In those years I've seen PE come in and decimate the industry. My first SEMA show in 1985, it was all mom and pop then. I know a lot of good people who work for Hoonigan/Wheel Pros (started with Ready Lift). When they bought 4 Wheel Parts from Polaris was the beginning of the end for them. Now the original owner, really owners son, Greg Adler is getting the 4WP stores back with a lot of help (50% ownership) by ARB, the Australian accessory company. It's less than half of the original amount of stores now, many were sold off.
I'm in my own PE hell right now. We'll see if I have a job or not by the end of October.
I'm in my own PE hell right now. We'll see if I have a job or not by the end of October.
https://shop.hoonigan.com/collections/large-stickers
These are what I see plastered on vehicles around here.
Silly as it sounds…honestly, thanks for pointing that out, I’ll keep my eyes open!
Here in rural Vermont, there’s mainly two types of stickered vehicles, representing two extremes (without getting political). The Subaru crowd with their political stickers and peace signs. And the jacked-up truck people with all of the firearms manufacturer stickers and/or deer hunting-focused stickers.
I’ve lived all over the country, including Texas, and this is the only place I’ve seen gorgeous petite females who choose to own the giant lifted trucks and can build them as well.
- Joined
- Jun 22, 2022
- Messages
- 1,545
That's exactly how private equity works. I hadn't heard of this company but as I went down the thread, I'm like "this sounds like PE behavior".
Hi all. I saw this on jalopnik and was really surprised. Apparently Hoonigan which the late Ken Block started is $1.2 Billion in debt but is looking at restructuring and coming out debt free. How the article talked about it but, aren't there people that should have caught this way before being a Billion in debt? Makes me wonder how involved Ken Block and his wife really were.
Lots of zombie companies with crazy amount of debt and almost bankrupt.
Not surprised this happened….
Lots of zombie companies with crazy amount of debt and almost bankrupt.
Not surprised this happened….
Yep.
The leaches have zero interest if the company is around in 5 years.
Extract all the assets and leave the company with debt.
Read up about Steward Healthcare.
https://www.nbcboston.com/news/loca...mbiguous-official-says/3485481/?os=vb&ref=app
Last edited:
Curious if he had great partners with DC shoes who carried the business side? Or wrong folks running the new group ?
- Joined
- Jun 22, 2022
- Messages
- 1,545
I've been following that debacle. $800 million profit for Cerberus and billions in unpaid bills.
The chutzpa of the PE world is amazing.
Similar threads
