Gas Gas in Deep Financial Trouble, Files for Bankruptcy

Gas Gas files for bankruptcy 1 photo
Photo: Gas Gas
Things haven't been well lately for Spanish manufacturer Gas Gas, but until very recently, there still were some hopes for an investor to arrive and solve the financial issues. Unfortunately, such an investor did not appear, and Gas Gas filed for bankruptcy.
Back in early February, Gas Gas halted operations, putting around 500 employees in standby, including motorcycle and spare parts manufacturing, but also the research and development department.

Later that month, the first rumors surfaced indicating that Austrian manufacturer KTM is being allegedly interested in the acquisition of Gas Gas. KTM officials denied the rumors, and until now, Mattighofen's interest seems to be zero, at least as far as the media can tell.

Over 30 million euros in debt

The government offered Gas Gas a loan worth €2 million ($2.2 mil), trying to keep the company afloat this spring, but this help was not enough. Media reports that Gas Gas' debt taps into the €30 million ($32.8 mil), which makes it a rather tough nut to crack.

Such money is not that easily available these days, unless we're considering big investment companies or major manufacturers that consider adding off-road machines to their roster. Such a move could prove a profitable one, as Gas Gas still holds a good reputation in the segment.

Some say that they are better at building bikes than marketing and selling them. In a way, the Gas gas story is not unlike those of Brammo or Erik Buell Racing. Electric machinery maker Brammo retained the powertrain business and sold the bike division to Polaris, who already put it to work and surfaced the first electric Victory motorcycle.

EBR has been less lucky, and so far, the company entered receivership, waiting for someone to step in and pay the bills, prior to filing for outright bankruptcy.

We honestly hope that someone seizes the opportunity to acquire Gas Gas and invest a bit for better sales, as it would be a real shame to see this 30-year-old manufacturer fade away into oblivion.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories