Ducati Monster Forum

"Listed as having $1.12 million in assets and $1.44 million in debts, Hudson Valley Merchandising LLC (the merchandising arm of Orange County Choppers) will be given a trustee by the court, who will then likely dismantle the company and its assets in order to make the company’s creditors as whole as possible."

For the full text:
http://www.asphaltandrubber.com/news/orange-county-choppers-merchandise-bankruptcy/ (http://www.asphaltandrubber.com/news/orange-county-choppers-merchandise-bankruptcy/)

I didn't see it, but is there a subtext that states anyone who currently owns and/or wears OCC apparel will be required to relinquish the right to do so with said apparel?

That would be nice.

Can't do that... how ever nice it would be. They are stuck with their decision.

But holy - didn't not this item at first. Sr was named in a 'roids case
"According to the case records, Paul Sr. received 73 prescriptions between the dates of August 2, 2002 and October 3, 2006. Costing $51,784.78, the senior Teutul reportedly received HGH along with the steroids testosterone, nandrolone, and stanozolol. "

That explains a lot.
http://www.asphaltandrubber.com/news/paul-teutul-sr-steroids/ (http://www.asphaltandrubber.com/news/paul-teutul-sr-steroids/)

Go figure (on all counts).

http://www.asphaltandrubber.com/news/orange-county-choppers-foreclosure/ (http://www.asphaltandrubber.com/news/orange-county-choppers-foreclosure/)

I understand they're barely motorcycles...sorry Dave...  :P

but off to General with this one.

It's been real, it's been fun. But it hasn't been real fun....

This was from 2011 and it was later revealed that it was a "power play" by Sr. to get GE to re-fi at a lower rate. They did and they aren't being foreclosed on.

The marketing branch thing is new news though. And not surprising really. Their t-shirt sales have tanked. And no mere mortal can afford one of their motorcycle like abortions so...

how can companies run debt to income ratios in the 100+% category and we can't?   >:(

I wonder if they're counting the apparel as assets?

I remember catching one episode where they were just finishing the new, gigantic, hellishly expensive, "world headquarters" building or whatever it was called, thinking, "Whoa, guys, this ride isn't going to last forever."

If OCC had been mine I would have made do with the original cramped shithole building and equipment, expanded into other existing buildings as necessary, and ferreted away cash like mad.

Of course, the show (with me) would have been far less "dramatic".....

?  Sure we can; its called a home mortgage.

On my way to a Guzzi/BMW Rally in Western Mass a few years ago...

(http://www.gigabikes.com/gallery/albums/userpics/10081/IMG_20110805_111417a.jpg)


It was depressing inside - I did however buy an XXL t-shirt for a bud (in Mass) for $5 that day.

How so?

The bikes themselves, or lack thereof?

 ;D

Honestly, I stopped to have a laugh cause I knew they (the bike manufacturing outfit) were in bankruptcy at the time. I mean, here was this monument to chopperdom which I loathe, so I couldn't pass up the opportunity to stop and chuckle at what I don't like.

That's not how it went though.

The place was partially emptied. There were still RACKS AND RACKS of merchandise (as in t-shirts, hats, dolls, and various other OCC chock-keys).

But what I hadn't expected was there was also a decent amount of HELMETS (including FF), and riding gear (textile and leather armored jackets) and parts (ok, granted, mostly Harley stuff and lots of chrome, but PARTS AND ACCESSORIES). It was evident to me that despite all the theme bikes and TV bullshit - these guys DID LOVE MOTORCYCLES and WERE trying to sell to people who rode them.

Remember, they took on a Ducati franchise for a while.

Anyway, it was depressing because it was evident that a number of locals had made their living there for a while and they knew it was going away.

Not to mention the building itself is rather impressive - so can you imagine a building like that filled with bikes - maybe a Ducati/Triumph/Harley dealer or something like that. Man it COULD have been a cool place. Not to mention the shop out back. How nice would it be to have a dealer who could CNC a part for you (for a price).

Anyway - I went it to laugh, but left a little sad.

I'm heading to Newburgh this week - will try to swing past and see whazzup...without a TV show it's unlikely they'll be selling much of anything for the foreseeable future...and you have to believe the $1.12MM in assets is woefully inflated...

Although I rarely watch the show, the bits I've seen where Sr's, Jr's, Mikey's etc. houses and cars are shown makes me listen for the other shoe to drop - the one where they used all the bank's money to fatten their "personal fortunes" with inflated salaries, mansions in the woods, fleets of Hummers and Mercedes, and who knows what else - which the bank will certainly go after once the T-shirt and bobble-head collection appraised at $250,000 is found to be worth about $50...

Seen this sort of thing several times before - in one case the owner eventually went to prison -- he got greedy and used much of the $2MM he was loaned to purchase inventory to, instead, buy a decent-sized boat, offshore property, etc..  Financier wasn't pleased and decided to get even...

I believe it's an LLC, so unless Sr personally guaranteed it's debts, they can't go after good cars, house etc.

That's assuming there was no misappropriation of funds.

For their sake I hope it's all legit, but it's a complex area....just looking at the houses and cars, I think OCC's (and the loan officer's) gonna have some explaining to do.  Clever lenders are finding ways to "pierce the corporate veil" and make the borrower pay - especially with smaller companies like OCC.  On the other hand, $1MM isn't all that much money these days -- time will tell....

 They are too small to be too big to fail!

^ Reading that made my brain hurt.

+1   PCV as alter-ego / abuse-of-corp-form theories ruin their limited liability protection.