Motorsport Aftermarket Group, the parent company behind a handful of prominent brands, filed for relief under Chapter 11 bankruptcy last November (2017). In exchange for over $300 million in debt accumulated between 19 separate compaines, Motorsport Aftermarket Group (MAG) hopes to resolve the situation with a debt equipty swap – where they will provide company equity/stock as a payment for their debts.
Apparel/parts distributer Tucker Rocky is one of the 19 companies under the MAG umbrella. Tucker Rocky’s VP of sales and marketing, Kenan Ikels, has released a statement to their dealers:
“I want to kick off the year by sharing some very good news. Wednesday, January 10th, Tucker Rocky filed its Disclosure Statement and Plan for restructuring our debt with the bankruptcy court—this is a major milestone. These documents outline the legal structure of MAG and Tucker Rocky upon emergence from Chapter 11. Our goal was to move through this process in 4 to 6 months while conducting “business as usual.” We are very much on target to accomplish that. Soon, we will emerge from chapter 11 a much stronger company.
I want to take a moment to address our vendor relationships. I know there has been some “noise” in the industry and I want to ensure you are getting the facts. As you would expect, the Chapter 11 filing caused concern for many of our vendors, and rightly so. But it’s important that you know that we have been working very hard to get our vendors paid in full. We are in the final stage of securing ongoing commitments with our vendors that represent 99% of our revenue. Our business is built on a platform of strong, personal relationships that we have every intention of maintaining. Just like you, our vendors are valued partners.
- The Tucker Rocky Dealer and Brand Expo is taking place February 8-9, and we are already seeing an increase in registrations over last year. Now is the time to register if you haven’t already done so. The registration link is https://expo.tuckerrocky.com/.
- We are working closely with our Expo vendors to finalize special programs designed to help you prepare for the upcoming season.
- We have and will continue to take aggressive actions to make sure we have the inventory ready to fill your orders.
- There will also be education seminars designed to help you expand and grow your business, from LightSpeed to visual merchandising and social media marketing.
- Up on conclusion of the Expo, Friday night we will be hosting our Dealer Appreciation celebration. Our way of thanking you for your partnership.
In closing, thank you for your support as we’ve been working through this process. It is greatly appreciated. We are looking forward to returning that support by helping you to expand and grow your business in 2018.
Source: Powersports Business