we are in the dallas fort worth area where AIH is based. My friend that lives in ft worth said he read in the ft worth newspaper last week that AIH officially shut its doors. I believe Textron was the main financial backer for AIH and they pulled financial support. I havent read that article but that was what i was told.

 

Very well stated. Could not have been said better Thongs! The dealers better wake up in this country and realize we are headed (or are already in) a recession and start to deal instead of holding onto their bikes and demanding thousands over MSRP or there are going to be more doorsclosing up!!!!

 

Article in Dealer News Magazine

Creditors Seek to Force American IronHorse Into Bankruptcy

Mar 5, 2008
Byennis Johnson
A trio of creditors has filed a petition in U.S. Bankruptcy court to force American IronHorse into involuntary bankruptcy for failing to pay debts that could total $2 million.

According to a filing with court's Northern Texas district, Fort Worth-based American IronHorse owes $60,000 to AG Nichlos Jr. and $30,000 each to William E. Buford and Jim Graham. According to involuntary bankruptcy laws this indicates that AIH has 12 or more creditors, in which case only three creditors owed a minimum of $10,775 in total need file the petition.

Troy D. Phillips, attorney for the creditors listed on the petition, confirmed that the three are representative of a larger group of investors. Phillips couldn't say how many other creditors there are but estimated the total due them is about $2 million.

Phillips says the group petitioned the bankruptcy, in this case Chapter 11, because it wants to force American IronHorse to share reported refinancing plans. The custom manufacturer now has 30 days to respond to the filing and can choose to contest the petition, convert the Chapter 11 to a Chapter 7 and liquidate its assets or go forward with the Chapter 11 and reorganize.

American IronHorse CEO and president Buck Hendrickson could not be reached for comment.

In early February a source close to AIH said that a Dallas-based group was seriously considering buying the company and was vetting the OE's operations. Hendrickson told Dealernews at the time that the company is always looking for ways to bring in cash to help the business grow and advance, but wouldn't go into any detail.

A conference regarding the involuntary bankruptcy is scheduled for March 31 at 9:30 a.m. in the U.S. District Court in Forth Worth.

A move to force bankruptcy is often viewed as a last resort for creditors as a ruling against them could result in them paying damages and attorney's fees. It is usually initiated to force a debtor to face all its creditors at once, rather than have it parcel out money to select creditors. It can also be filed to stop a troubled debtor from using all its assets before finally filing for bankruptcy.

American IronHorse announced in February that it was ceasing production in an effort to stave off overproduction and prevent dealers from stacking up inventory. At the time, Hendrickson called the layoffs temporary and said the company was still in business and moving out on-hand motorcycles.

"We're looking at trying to be open back up some time in the middle or the third week of February," he said at the time. There is no new information as to when the company will reopen its doors.

Then, last week, the custom V-twin manufacturer initiated a sale through a Michigan-based auction and liquidation house to move $10 million in obsolete and discontinued inventory. Hendrickson said the sale was a means for the company to get rid of inventory that doesn't fit AIH's lineup for 2008 and 2009. "It should have been sold off years ago," he told Dealernews.[/align]

 

I don't believe that $2M in bad debt would bankrupt a company the size of AIH. There is half that much in 2007 AIH inventory on cosignment thru Textron Financial sitting at our local dealers showroom. There must be $20M inventory sitting at the Textron AIH warehouse in Kentucky alone. That would be like Blockbuster wanting you to voluntary forfit your house over the $11 owed on past due movies. Don't get me wrong, I am not sticking up for a company that has continued to stumble and suck the living daylight out of their customer base, but I don't see $2M sinking AIH. Did they have the Ft Worth dealership fire sale bikes at Daytona last week (similar to Sturgis last summer)? Wonder how Bruce Rossemeyer took that.

 

You can't build bikes when no one will sell you material to build them with. I'm sure S&S , Performance Machine and all the rest want what's owed to them before the put out anymore engines or brake parts. Not to mention utility bills and the like.

 

You are implying that if you cannot work on a motorcycle then you shouldn't own one. That's rediculous! Should we not buy automobiles if we are not mechanics? If your philosophy stood true then only about 10% of the population would own a vehicle. I don't think that after spending $42,000 on a piece of machinery that it's to much to ask that it run without constant problems. I purchased a new 06 Slammer at Xmas 06'. Jan. 12, 07, started leaking motor oil. Feb. 07, brought it in for a tranny leak, late Feb. 07, speedo crapped out, then 5 days later the starter crapped out. March 17, 07 out riding and stopped for gas. The bike would not start up again. Wouldn't do anything! Total electrical system failure. I brought it back to the dealer and told them to shove it and give my money back. I had to get an attorney but 4 months later I had my money back plus court cost. Now don't start telling me I should have had more mechanical skills to fix that piece of crap. Incidentally I had a Big Dog before that and was plagued by oil leaks and finally a cracked frame. Customs just don't have the quality control on thier side. If you talk to alot of AIH owners there are alot more unhappy ones than happy ones. AIH is getting what they deserve for putting out a shoddy product and NEVER making a decent effort to correctconstant and repeated problems across the board of all thier models. I got rid of that crap. Bought a new $15,000 Harley. Raked the frame and did other custom work to her. I've got $26,000 invested on this bike. It looks awsome and other than oil changes has been completely reliable for 18 months. Sympathizers can flame me but everything I said is solid truth.
One last thing. The Houston dealers and Dallas are closed. Employees gone. Doors chained.

 

I'm not implying that you need to be able to work on your own bike to own one. I'm just saying that if you can't, and you have to return it to the dealer for every little thing, don't cry about it being in the shop. My experience, and the experiences of other AIH owners I know, are not like yours. I'm sorry about your luck, but I don't agree with your assesments of AIH quality. I still think that most people's troubles are due to crappy dealers, not a crappy product. I happen to have a great dealer and have recomended him to many people. Not flaming anybody, just trying to show there is a different side of the story to the people who say AIH sucks. I'm glad things have worked out for you. Ride safe.

 

AIH isn't going out of business, their phone service is probably just nextel, just keep calling them

 

All i can say about the CUSTOM CHOPPER SCENE is that iam sure there are alot of shop owners and custom builders sitting around with there buddies right now drinking a cold one and laughing at how much money they raked in on this whole chopper fad and all the people that dropped $30,000 and $40,000 plus on a chopper that was pcs together and wasn't worth half that figure.

When it started me and my dad both thought some of those bikes had an eye catching appeal but they lacked one thing.

The history and the following Loyal following that Harley has and they will not be worth squat in a cpl years and here we are a cpl years later and they are worth crap and most of the builders have issues with bikes and warranties and are struggling money wise. or living large off the nest egg that a huge profit margin on a way overpriced bike made them.

 

We were all taken , Custom owners and Harley owners. I own both and will lose my *** on resale , but then again i knew i would. I did not buy them as an investment as some have , i bought them to ride. Have you checked the market lately ?
The market is flooded with Harleys and customs that are not selling.