Privately-held Velocity Holding and 18 affiliated debtors–including Velocity Pooling Vehicle, Motorsport Aftermarket Group and 16 other affiliated Debtors–filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-12442.
The Company, which distributes, designs, manufactures, retails and markets aftermarket parts, apparel and accessories for the powersports industry, is represented by Norman L. Pernick of Cole Schotz.
According to documents filed with the Court, “Unfortunately, the U.S. powersports aftermarket instead contracted in the postbusiness combination years, with the market declining approximately 2% in 2015, 6% in 2016 and 8% so far in 2017. The impact on the Company’s sales as a result of the market decline was significant, with projected 2017 sales being approximately 20% lower than 2014 sales. While there were operational efforts taken in an effort to streamline and accommodate the hostile market, the Debtors suffered a significant loss in earnings, as well as the liquidity to fund both their operations and their debt service obligations.”
Affiliated Debtors indicate assets greater than $100 million.
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