Wisconsin Harley Dealership Closes Amid $6.3 Million Dollar Lawsuit
Iron Town Harley-Davidson closed its doors this week without notice, and faces a daunting federal lawsuit.
Iron Town Harley-Davidson in New Berlin, WI has been a mainstay of the motorcycle community for many years. When bikers showed up this past Tuesday for their popular Bike Night, they were shocked to see the Harley dealership closed. The only explanation was a note posted on the doors that raises more questions than answers.
The note, which was also shared on Iron Town’s social media, reads: “It is with heavy hearts we deliver this message. Until further notice, Iron Town Harley-Davidson is closed for day-to-day operations. Ongoing conversations with Harley-Davidson Motor Company and a new management team are being conducted and we assure you, as soon as any new information is available, it will be passed along to everyone.”
Many assumed that the dealership had been facing problems with sales, business as usual. But apparently, there was more to the story.
According to the Journal Sentinel, Iron Town H-D is currently involved in a $6.3 million federal lawsuit. The store, as well as a partner store in nearby Janesville, has accrued substantial debts to lending agency Harley-Davidson Credit-Corporation and are now in delinquency.
In the lawsuit filed this week, Harley-Davidson Credit Corp. states that both dealerships are in breach of contract for selling merchandise and not repaying the lending agency. The lawsuit also accuses the dealerships of fraud, and asks that Iron Town suspend all sales so the credit company incurs no further financial losses.
Iron Town, previously named Hal’s Harley-Davidson, is owned by Eric and Sara Pomeroy. However, since April, the dealerships have been managed by Wisconsin Harley-Davidson in Oconomowoc.
There has been no word from the Pomeroys nor the management at Wisconsin Harley-Davidson on the matter.
The loss is already being felt by the Harley customers in the area.
“I’m really upset,” Teresa Davis of Milwaukee told Fox 6 News. “To come to a Harley dealership and it’s not open on a Tuesday at 3 o’clock is unheard of. What happened that you’re not open?”
Customer Carl Samppala had a scare discovering the closure, as his bike was in Iron Town’s shop undergoing maintenance.
“It was a bit of a surprise…There was a voicemail waiting for me. Basically said, ‘Come and get your bike,'” Samppala says.
But the bikers of the community remain optimistic that the situation will be resolved soon, and Iron Town can get back to the business of bikes.
Says Samppala: “It’s my hope that this will be a short-term thing, as they get things sorted out.”
Photos: Iron Town H-D Facebook, Fox 6 News
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