Hoonigan, which was known up until October 2023 as Wheel Pros LLC, has filed for Chapter 11 relief.
In a Sept. 8 statement, Hoonigan officials said that “the company has entered into a restructuring support agreement (RSA) with a majority of its debtholders through which it expects to eliminate approximately $1.2 billion of the company’s debt and secure up to approximately $570 million of new capital, substantially improving 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 a significantly strengthened balance sheet and new capital, this transaction will position us to invest in innovation and further drive financial performance. 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.”
In order to implement the RSA, 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, the company expects to emerge under the majority ownership of a group of its current lenders, who recognize the potential of the automotive aftermarket industry and are confident in Hoonigan’s ability to continue to operate at its forefront,” say Hoonigan officials. “The RSA contemplates a swift in-court restructuring, with emergence from Chapter 11 anticipated within two months.
“Importantly, the RSA provides for a consensual, prepackaged restructuring proceeding, including a motion seeking to approve $110 million term loan debtor-in-possession (DIP) facility and a $175 million ABL DIP facility. The company anticipates that this will allow the business to continue operating in the ordinary course during the restructuring without impacting trade creditors, customers, employees, vendor, or suppliers and will allow the company 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.”
In a statement released on Oct. 25, 2023, that announced the rebrandng of Wheel Pros to Hoonigan, officials from Hoonigan stated that the Wheel Pros name “will remain within the Hoonigan brand family as the company's wholesaler channel and will continue to serve the company’s retailers and dealers” and that Hoonigan’s “subsidiary brands, including throtl and 4 Wheel Parts, will maintain their ongoing operations within their established e-commerce and retail sales channels, preserving the continuity of their services.”
Hoonigan, on its website, says it owns the following brands in the "wheels, tires and accessories" category: American Force, American Racing, American Racing ATX Series, Asanti, Black Rhino Hard Alloys, Dub, EFX Tires, Fairway Alloys, Foose, Fuel Off-Road, Fuel UTV, Gorilla Automotive Products, HELP, Kinesis, KMC Wheels, KMC UTV Wheels, Motegi, Moto Metal, MSA Off Road Wheels, Niche, Performance Replicas Inc., Petrol, Poison Spyder, Pro Comp, Rotiform, Smitty Bilt, Status, TSW, U.S. Mags Custom Wheels and XD Wheels.
In the "suspension and accessories" category, Hoonigan owns the following brands: Axle & Gear, Logic, Pro Comp, ReadyAIR, ReadyLIFT, Rubicon Express, TeraFlex and Zbroz.
In the "lighting" category, Hoonigan owns the Headlight Revolution, Morimoto and Pro Comp brands, plus others. The company also owns and operates 4 Wheel Parts, a chain of retail stores, as well as Throtl, an online retailer of performance parts.
Additional information regarding the Chapter 11 process is available at https://cases.stretto.com/WheelPros
