Hoonigan's finances have hit a rough patch, yet the company is determined to keep its wheels turning.
The automotive entertainment and aftermarket parts company, renowned for its Gymkhana videos featuring Ken Block, announced on Monday that it has filed for Chapter 11 bankruptcy protection with a court in Delaware.
Hoonigan stated that it has entered into a restructuring agreement with a majority of its creditors, through which it expects to eliminate approximately $1.2 billion from its current debts totaling $1.75 billion. The company also plans to secure up to $570 million in new capital.
The company mentioned that it anticipates its operations will continue as usual during the process, and that all unsecured creditors should be paid in full.
Hoonigan is owned by private equity firm Clearlake Capital and accumulated most of its debts in the years following the pandemic due to a series of acquisitions aimed at rapidly expanding the business.
It all began when aftermarket wheels giant Wheel Pros acquired the original Hoonigan in 2021, along with several other companies (including throtl and Transamerican Auto Parts), with the combined entity being rebranded as Hoonigan in late 2023. While revenues initially surged, challenges like supply chain constraints and rising interest rates led to a decline in 2023, causing the company to miss projected earnings targets. By 2024, the company began missing interest payments on some of its debts.
The company's fate now rests in the court managing its restructuring agreement.
Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.
