Erik Buell Racing, the dream was shattered by debt

Erik BuellRacing – Erik Buell Racing seemed poised for a success story, a phoenix rising from the ashes of Buell and tying up with an Indian giant to ensure its successful future. But this week the company closed its doors, shut down its website and began the process of seeking court protection for its creditors.

According to the Milwaukee Journal Sentinel, EBR's debts amount to more than $20 million. A success story shattered by debt, in short. There Buell Motorcycles had been purchased by Harley-Davidson only to be summarily closed in 2009, at the beginning of a financial crisis, with the Milwaukee brand deciding to focus on its models “core cruiser” rather than on Buell sports bikes. To the founder of the company Eric Buell he was prevented from restarting production for at least a year, but still secured the rights to much of the machinery belonging to Buell. As soon as he got the permit back he announced his intention to launch the Erik BuellRacing and to begin work on a series of new models derived from a prototype that was originally developed to be the successor to the Buell 1125R. Thus was born 1190RX, a good two-wheeler despite some flaws.

Then the Indian Hero decided to purchase the 49% of EBR, in exchange for technical help from Erik Buell and his engineers in developing new models under the Hero name. A 250cc sports bike developed by EBR for Hero was expected to hit the market later this year. With Hero's massive financial clout on board it seemed that EBR was financially secure, but the news of the closure proved everyone wrong, taking away their jobs from the company's 126 employees. The only glimmer of hope seems to be that EBR is seeking the protection of “Chapter 128”, an old law from 1937 that allows you to protect yourself from creditors in the event of bankruptcy. Unlike bankruptcy, however, “Chapter 128” it does not cancel debts and that means Erik Buell will still have to fight to keep his company alive.