Erik Buell Racing, an East Troy motorcycle manufacturer that was the successor to a company once owned by Harley-Davidson Inc., has ceased operations.
The sudden move, announced Wednesday, leaves 126 employees out of work. The company has more than $20 million in outstanding liabilities, according to its attorney, and is seeking court protection from creditors.
Erik Buell Racing is the sequel to Buell Motorcycle Co., which was owned by Harley-Davidson for more than a decade before Harley dropped the brand in 2009.
Initially, the new company produced hand-built $40,000 sport bikes for road-racing enthusiasts. More recently, it geared up to build a less expensive mass-production motorcycle with a racing pedigree.
Company founder Erik Buell invested his own money into the venture, while Hero MotoCorp Ltd., the largest motorcycle manufacturer in India, had a 49% ownership stake.
The company had done well on the national racing circuit, where it went head to head with much larger companies such as Honda, Yamaha and Kawasaki. But it struggled to gain sales in a marketplace dominated by Japanese and European sport bike manufacturers.
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