The company plans to eliminate its debt and raise $570 million in new capital
Hoonigan, founded by Ken Block, has filed for Chapter 11 bankruptcy in Delaware after accumulating $1.2 billion in debt, but remains optimistic about securing new funding and continuing operations.
Hoonigan’s recent history is complex. After years of operating independently, it merged with Wheels Pro in September 2021, a company specializing in aftermarket wheels, tires, and accessories. Wheels Pro has been owned by private equity firm Clearlake Capital since April 2018, during which time it also acquired Gorilla, ReadyLift, MHT Luxury Alloys, ZBroz, and TSW before merging with Hoonigan.
Following its merger with Hoonigan, the company acquired Throtl, Teraflex, and 4WP, and was later rebranded as Hoonigan. According to the bankruptcy filing, revenue increased from $844 million in 2019 to $1.5 billion by 2022, but began to decline in 2023.
The RSA includes a request to approve a $110 million term loan debtor-in-possession facility and a $175 million ABL DIP facility, ensuring the company can continue operations during restructuring without affecting trade creditors, customers, employees, vendors, or suppliers.
“This announcement is a key milestone for Hoonigan, enabling us to strengthen our leadership in the growing automotive aftermarket industry,” said Hoonigan CEO Vance Johnston. “With a much stronger balance sheet and new capital, this deal will allow us to invest in innovation and boost financial performance. Supported by our financial partners, we remain fully committed to delivering cutting-edge products and top-tier service to our partners throughout this process.”
