$1.2 billion in debt.

Not surprised, after Ken Block's sale (and death) and all of the original cool content team left due to corporate crap.
Donut media probably gonna follow as well since they've essentially gone down the same path and their main guys have left as well.

Pick your news outlet.

 

$1.2B is quite a tab to run up.

 

Private equity strikes again.

 

Not surprised, virtually every hobbie has something similar going on. Smh.

 

$1.2 billion in debt? That is bonkers! Do they have private jets and a yacht somewhere in there? How in the world do you rack up that kind of debt?

 

See also Steward Health and Red Lobster. It's like they almost followed a recipe: sale/lease back the property, saddle the company with debt, disperse dividends to investors, then cry uncle and throw out some disingenuos reasons.

Edit for clarity: Steward's demise occurred under it's physician ownership, but you could argue they were set upon their path after cerebus (private equity) and their continued relationship with Medical properties trust (REIT in part supported by private equity).

 

1.2B is mostly debt from other companies (wheel pro?, I forget) that got saddled into the Hoonigan brand

Essentially it went
Hoonigan (doing fine) ---> acquisition of a debt-loaded company (wheelpros? I forget) --> retitle the debt loaded company as Hoonigan --> disperse the dividends --> try to make Hoonigan make everything whole again --> "surprise it didnt work" -> file for bankruptcy

 

added one more in there

 

Nice breakdown, such an unfortunate result which even more unfortunately gets applied so often to other companies.

 

I loved the videos , the cars weren't that expensive to build, that level of debt was just stupid, no matter who caused it. Even if Ken Block was alive he couldn't pull them out of that hole .