Essentially Chapter 11 Bankruptcy
Norton Motorcycles has one of those names that has a long history behind it. The future of the company, however, is questionable. Norton just went into administration in the UK, which is the equivalent of filing chapter 11 bankruptcy in the U.S.
Accounting firm BDO was appointed administrator of the motorcycle company. The reason the company went into administration is that it failed to make payment of £300,000 (about $393,000) that was owed to HM Revenue & Customs, according to Motorbike Writer.
Any deposits for bikes that have not yet been built will be returned to customers. BDO spokesman Lee Causer said the firm will “determine and execute the most appropriate strategy as swiftly as possible to protect creditors’ interests, bearing in mind the need to minimize distress for all parties”.
It’s important to note that administration in the UK does not necessarily mean the end of a company. It’s designed to protect the company from creditors. BDO will try to help Norton and the creditors reach the best possible outcome for the future.
This seems to be a long-time coming. The company has been mired in issues with customers and creditors for a few years now. Bikes were not being delivered, though deposits were taken. The company also launched a crowd-funding campaign that ended with a single anonymous investor spending £1 million (about $1,310,000). Despite this, Norton continued to struggle with money. All of the company’s issues came to a head and it has ended in administration.
The future of the company is unclear. This chapter of the Norton story is over, though I would expect someone with some money will come along and make Norton motorcycles again at some point. The brand has strong recognition and a long history. If it can be run properly the company could be successful.
I really feel for Stuart Garner and all the people at Norton, not to mention those wanting the bikes. The news here in the UK implies that it was their bank (Metro Bank) that pulled the plug rather than the tax people.
I hope this can be resolved quickly and fairly for all concerned. We need Norton to succeed.
I don’t feel sorry for him. Read the article about how he screwed many people out of the pensions. His actions are outrageous and he should probably be in prison.
What a shame as usual the bank forecloses in stead of helping here’s hopeing someone will come along and sort it out if i had the money i would..
Indeed, he appears to have raided the pension fund, tried to screw the tax man over and used the deposits – if you have a partially built bike are you going to get part of your deposit back ? Probably not-
It appears he has used his employees, suppliers (some of whom will be small companies who can ill afford the bad debt) – I feel for his employees and suppliers.
Surely there must be a Billionaire who wants a hobby. If I was, I would buy Norton immediately.