Spanish off road motorcycle manufacturer Gas Gas has filed for bankruptcy, unable to meet its debt obligations. It’s been a torrid time for the company in recent years, having ceased all production of bikes in February while continuing with the operation of its spare parts division and sports side of the business in an attempt to stay afloat.
Gas Gas was hit hard by the economic downturn in Europe. Sales plummeted at a time the company had large amounts of debt. The perfect storm saw the company unable to service the interest payments on its loans which had lead to attempts to restructure the business. Unfortunately with the company now insolvent, this didn’t happen in time.
The following is a statement from Yariv Gilat, President of Gas Gas Motos:
To all Importers and Dealers Gas Gas Today, we have filed in court documents to the insolvency of Gas Gas Motos. Unfortunately, all our efforts to find a solution that will allow the continuation of the company so far were not enough. We are confident that with this new scenario, the company will be able to attract new investors and continue to produce excellent products, while continuing to lead the market of the Trial, producing big Enduro bikes and providing a better service to all our fans the whole world. The company was surrounded by people who are passionate, who have done their best to the company’s growth, in order to commercialize the best bikes.
In the coming days we will notify the name of the trustee that the court will appoint to ensure that the company will continue to provide after-sale (mainly spare parts), as long as there be a permanent solution. At that point, I would like to thank each and every one of you, all those who expect a lasting solution is found. The potential new investors in the company will find great people competent and passionate, who are constantly working to improve our bikes and many partners who strive to promote and market the most of our bikes everywhere.
We have not exhausted our efforts to find sufficient funds for the company, but the probability of finding a solution in the next few days is not very high. It’s very sad for us to take such a decision, given the 30 years of our great brand, but it is my duty, as President of the company, to think about the good of the company and decide accordingly.
According to the UK importer of Gas Gas motorcycles, there are several interested parties in the background who have begun negotiations to buy the company.