Embattled Wisconsin Dealers May Have Buyers
Closed amid bankruptcy filings and lawsuits, two Milwaukee-area dealerships have a bright future ahead.
Iron Town Harley-Davidson, located in New Berlin, Wisconsin, has had a rough year. As we recently reported, the dealership, located outside of Waukesha and just southwest of Milwaukee, was closed suddenly last month. Its sister dealership, located an hour southwest in Janesville, closed in the spring, according to Milwaukee Business News.
The dealerships closed amid a bankruptcy filing. That filing stemmed from a lawsuit from none other than Harley-Davidson Credit Corp., who claimed that the dealerships had failed to pay for over $6.3 million worth of motorcycles that they had sold.
However, there is some light at the end of the tunnel for the embattled dealership franchises. Harley-Davidson Credit Corp. dismissed its lawsuit last week. In addition, two ownership groups are in talks with the owners of Iron Town Harley-Davidson to purchase the dealership and its assets.
In addition, another dealer is interested in adding the Janesville store to their family, while still another group would like to purchase both dealerships. Regardless, Harley-Davidson will have to sign off any new franchisee.
Earlier this year, the owners of Wisconsin Harley-Davidson in Oconomowoc agreed to manage the Iron Town Harley-Davidson dealership and intended to purchase the store. However, they soon realized that the store needed more financial help than they could provide. Unable to secure additional funding, they ultimately were unable to purchase the ailing dealership.
According to the bankruptcy filing, the two dealerships had combined assets of $10.1 million, with $13.1 million in claims levied against them.
Both Harley-Davidson and the dealership owners (H2D Motorcyle/JHD Holdings) would like to put this behind them as soon as possible. An auction for the franchises and their assets will likely take place by mid-October, with the purchases being completed by mid-November. With their proximity to Milwaukee, one would hope that both dealerships can return to their former glory, serving both existing and new customers well into the future.
Photos: Milwaukee Business News/Harley-Davidson
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