The famed decal on the back of so many RWD beaters is doing a little restructuring, financially, that is. Wheel Pros, LLC, doing business as Hoonigan, a major player in the aftermarket automotive industry, has begun a financial restructuring process that aims to secure its future as a market leader. Hoonigan’s restructuring, which includes Chapter 11 proceedings, follows a Restructuring Support Agreement (RSA) made with the majority of its debt holders, and is set to eliminate approximately $1.2 billion in debt. Moreover, the company is set to receive up to $570 million in new capital, allowing it to significantly strengthen its balance sheet and refocus on innovation and growth.
The restructuring is expected to proceed quickly, with Hoonigan emerging under the control of current lenders, who are confident in the brand’s ability to thrive. CEO Vance Johnston stated, “With a significantly strengthened balance sheet and new capital, this transaction will position us to invest in innovation and further drive financial performance.” The restructuring process will be conducted smoothly, with no disruption to trade creditors, employees, or customers.
In addition, Hoonigan has secured $110 million in term loan debtor-in-possession (DIP) financing and a $175 million ABL DIP facility, allowing it to continue its operations without any interruptions. It’s worth noting that this process only affects Hoonigan’s North American-based operations, as its international branches will remain unaffected.
Hoonigan’s restructuring process demonstrates that even the most innovative brands sometimes face financial challenges. With the company refocused and revitalized, Hoonigan is expected to remain a key player in the aftermarket automotive sector. Fans and consumers can expect a continued flow of cutting-edge products and services as the brand shifts into this next phase of its evolution.
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