Wheel Pros LLC (d/b/a Hoonigan) announced that it has commenced an in-court financial restructuring process which expects to eliminate approximately $1.2 billion of the brand’s debt and secure up to approximately $570 million of new capital, through a Restructuring Support Agreement (“RSA”) to improve the company’s balance sheet and financial position.
“Today’s announcement marks an important step forward for Hoonigan that will enable us to advance our industry-leading position in the growing automotive aftermarket sector,” said Vance Johnston, CEO of Hoonigan. “With the strong support of our financial partners, we remain laser-focused on providing cutting-edge products and best-in-class service to our partners throughout this process.”
Hoonigan has filed voluntary petitions for Chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware. As contemplated under the RSA, Hoonigan expects to emerge under the majority ownership of a group of its current lenders, who recognize the potential of the automotive aftermarket industry. The RSA contemplates a swift in-court restructuring, with emergence from Chapter 11 anticipated within two months.
The company anticipates that the RSA will allow the business to continue operating in the ordinary course during the restructuring without impacting trade creditors, customers, employees, vendors or suppliers and will allow Hoonigan to honor its commitments to strategic partners. Further, the company’s operations outside of North America are not part of the court-supervised restructuring process.
Hoonigan serves the automotive enthusiast industry with content and a wide selection of vehicle enhancements from its portfolio of brands, including Fuel Off-Road, American Racing, KMC, Morimoto, TeraFlex, Rotiform, and Black Rhino. Utilizing its expanding global network of distribution centers spanning North America, Australia, and Europe, Hoonigan serves over 30,000 retailers.
