Premium motorcycle dealer group files for Chapter 11
A national dealer group specializing in premium European motorcycle brands has filed for Chapter 11 bankruptcy protection, highlighting the financial pressures facing high-end dealerships despite continued long-term growth projections for the motorcycle market.
Motos America, Inc., a Salt Lake City, Utah-based motorcycle dealership group, filed for Chapter 11 protection on Dec. 31, 2025, in the U.S. Bankruptcy Court for the District of Utah. The company operates 13 dealerships across multiple states, including California, Florida, and Oregon, carrying brands such as BMW Motorrad, Triumph, Ducati, Royal Enfield, and Vespa.
The filing was first reported by TheStreet on Jan. 2, 2026, citing a combination of liquidity challenges, rising interest rates, and financing disruptions as key contributors to the restructuring.
Market growth and dealer pressures
According to Fortune Business Insights, the global motorcycle market was valued at $71.9 billion in 2024 and is projected to reach $119.1 billion by 2032, representing a compound annual growth rate of 6.7%. U.S. motorcycle sales are also forecast to increase, with the domestic market projected to reach $8.76 billion by 2032.
However, Motos America’s situation underscores the disconnect many dealers are experiencing between long-term market growth and short-term operational realities.
Rising interest rates have significantly increased inventory floorplan costs, particularly for dealers carrying premium motorcycles with higher price points and slower inventory turns. Most dealer floorplan loans are variable-rate, meaning financing expenses can rise quickly even when unit sales remain steady.
Liquidity issues and financing setbacks
According to reporting cited by TheStreet, Motos America experienced severe liquidity distress after losing a $3 million deposit tied to a planned $15 million credit facility that failed to close. The loss reportedly cut off critical financing needed to support ongoing operations.
Additional challenges included the inability to secure a separate $12 million financing round and mounting inventory financing costs. These factors ultimately led the company to pursue court-supervised restructuring.
In its bankruptcy petition, Motos America listed estimated assets of $500,000 to $1 million, while liabilities were reported at $10 million to $50 million, indicating that debts substantially outweigh assets.
SEC registration revoked
Operational challenges were compounded in late 2024 when the U.S. Securities and Exchange Commission revoked Motos America’s securities registration for failing to file required periodic reports. The revocation halted public trading of the company’s stock.
At the time, Motos America framed the regulatory change as an opportunity to refocus resources. In a November 2024 statement, CEO Vance Harrison said the move would allow the company to shift attention away from regulatory compliance and toward dealership operations and customer engagement.
“This step allows us to focus more intensely on building a thriving and passionate community of riders while continuing to expand our dealership footprint,” Harrison said at the time.
Harrison remains the company’s majority controlling shareholder, holding approximately 69% of voting power as of early 2023, according to SEC records.
Chapter 11: Path forward
Chapter 11 bankruptcy is designed to allow companies to reorganize their debts while continuing operations, rather than liquidating assets under Chapter 7. Motos America has not announced any immediate dealership closures related to the filing.
The case adds to a growing list of dealership and retail restructurings as higher borrowing costs, tighter credit markets, and cautious consumer spending continue to pressure discretionary retail categories — even those with positive long-term demand fundamentals.
Sources: The Street, ACCESS Newswire, bankruptcy court filings, and publicly available SEC records.
