The End of Hoonigan? Ken Block’s Former Company Files For Bankruptcy

Hoonigan Industries, the automotive lifestyle brand founded by the late motorsport icon Ken Block, has filed for Chapter 11 bankruptcy protection courtesy of an $1.2 Billion debt amount. 

Hoonigan

Image: Hoonigan

Founded in 2010, Hoonigan quickly became synonymous with extreme motorsports and viral online content, particularly through its Gymkhana video series, which showcased Block’s high-performance driving. The brand also extended its reach into apparel, automotive accessories, and partnerships with major names in motorsport. However, despite its strong presence in the automotive world, financial challenges have led the company to seek court-protected restructuring.

Hoonigan’s financial troubles are said to have intensified following its acquisition by private equity firm Clearlake Capital in 2021. Shortly after, the company was integrated into Wheel Pros, a leading aftermarket wheel manufacturer, in a deal meant to strengthen the brand’s operations. However, rather than stabilizing the business, this transition is believed to have contributed to its mounting debts.

The Chapter 11 filing will allow Hoonigan to restructure its finances while continuing operations. As part of the process, the company is working to secure $570 million in new funding, which is aimed at restoring financial health and supporting ongoing business activities. Vance Johnston, CEO of Hoonigan, expressed optimism about the company’s ability to emerge stronger and more stable from bankruptcy.

Hoonigan

Image: Hoonigan

“This bankruptcy is a critical step in realigning our finances,” Johnston said. “With a fortified balance sheet and fresh capital, we will be better positioned to focus on innovation, improve financial performance, and continue offering top-tier products to our partners. We’re grateful for the continued support of our financial backers and remain committed to serving our community throughout this transition.”

The news has stirred concern within the automotive and motorsport communities, especially among Hoonigan’s extensive fanbase. The brand’s daring stunts, high-energy content, and collaborations with global automotive giants have made it a household name among motorsport enthusiasts. Notably, the future of Hoonigan’s flagship content series, including Gymkhana, remains uncertain, raising questions about its ability to maintain its cultural influence within the motorsport world.

Related: This is the Final Gymkhana With Ken Block at the Helm

While the exact outcome of the bankruptcy proceedings is still unclear, Hoonigan’s leadership remains focused on preserving the company’s legacy. The coming months will be crucial in determining whether the brand can overcome these financial hurdles and remain a dominant player in the automotive lifestyle industry.

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The post The End of Hoonigan? Ken Block’s Former Company Files For Bankruptcy appeared first on CAR Magazine.


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