Hoonigan’s funds have hit the skids however the firm is decided to remain in operation.

The automotive leisure and aftermarket elements enterprise well-known for its Gymkhana movies starring Ken Block introduced on Monday that it has filed for chapter 11 chapter safety with a courtroom in Delaware.

Hoonigan mentioned it has entered right into a restructuring settlement with a majority of its collectors, through which it expects to remove roughly $1.2 billion from its present money owed which complete $1.75 billion. The corporate additionally plans to safe as much as $570 million in new capital.

The corporate mentioned it expects its operations to proceed as regular throughout the course of, and that each one unsecured collectors ought to be paid in full.

Hoonigan is owned by non-public fairness agency Clearlake Capital and racked up most of its money owed within the years following the pandemic with a sequence of acquisitions aimed toward quickly increasing the enterprise.

It began when aftermarket wheels large Wheel Professionals acquired the unique Hoonigan in 2021, together with just a few different corporations (together with throtl and Transamerican Auto Elements), with the mixed entity being rebranded Hoonigan in late 2023. Whereas revenues initially spiked, points like provide chain constraints and rising rates of interest noticed them begin to fall in 2023 and the corporate started lacking projected earnings targets. In 2024, the corporate began lacking curiosity funds on a few of its money owed.

The corporate’s destiny now rests on the courtroom approving its restructuring settlement.