Yamaha Motor Finance sues MOMS over alleged inventory financing default
Yamaha Motor Finance Corporation, U.S.A. has filed lawsuits against Motorcycles of Manchester and related MOMS entities, alleging a breach of an inventory financing agreement and seeking nearly $2.8 million.
The lawsuits were filed Sept. 17 in the U.S. District Court for the District of New Hampshire and the U.S. District Court for the District of Maine. The defendants named in the filings are Motorcycles of Manchester Inc., MOMS Middlesex LLC, MOMS Northampton LLC and Wheel Freedom LLC. Both cases list breach of contract as the cause of action.
According to a report by WMUR-TV, Yamaha Motor Finance and MOMS entered into an inventory financing agreement in 2024. Yamaha alleges that MOMS breached the agreement through what the complaint describes as failures to make timely payments on sold inventory, to pay past-due parts payments, and to pay past-due interest.
The New Hampshire federal docket confirms that Yamaha attached the Feb. 28, 2024, inventory financing agreement to its complaint, along with UCC financing statements, a Sept. 8 notice of payment default and demand for cure, and documentation related to inventory in New Hampshire.
The Maine case includes the same inventory financing agreement and related filings, such as a notice of default and collateral documentation in Maine.
The litigation comes as MOMS operates an expanding network of powersports dealerships throughout New England. MOMS describes itself as a family-owned dealership group founded in 1973, with nine locations listed on its LinkedIn company profile. Its brands include Yamaha, Indian Motorcycle, Ducati, Triumph, CFMOTO, Honda, Kawasaki and Can-Am, among others.
MOMS has also expanded through dealership acquisitions in recent years. In 2023, the company acquired Freedom Cycle in Concord, New Hampshire, expanding its dealership network.
The lawsuit is a civil contract dispute, and the allegations in Yamaha Motor Finance’s complaint have not been adjudicated. The federal court dockets do not list a jury demand.
