Motovan files for bankruptcy.

Discussion in 'Canada' started by theshnizzle, Jan 8, 2020.

  1. theshnizzle

    theshnizzle Long timer

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    i guess that’s why everything is on back order with no new stock coming in...when I googled this only one link came up referencing this. As if it isn’t hard enough to get parts already....
    #1
  2. devildogg

    devildogg Long timer

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    this:

    Dear Valued Customer,

    On December 2nd, 2019 due to certain business and financial challenges we face, Motovan Corporation
    and Motorcycle Tires & Accessories LLC (collectively the “Company”) voluntarily filed proceedings
    under the Companies’ Creditors Arrangement Act (“CCAA”), which establishes a formal restructuring
    process while obtaining the protection of the law during the process.

    The Company is NOT bankrupt and will continue its operations as usual.

    In the coming weeks, the Company will establish a plan while in the CCAA process, giving us the
    flexibility to ensure you receive the service you are accustomed to from the last 40 years. Please
    understand that this is a necessary step since the process will provide the financial security and the
    protection of the court for the establishment of a business strategy to ensure its eventual growth and
    long-term profitability.

    The company will continue to be led by its current management team and our family as we have in the
    past. Furthermore, KPMG Inc. was appointed Monitor by the Court and they possess a vast experience
    and expertise in such processes.

    Be sure that we will work diligently on the plan to ensure our success and continue our business
    relationship with you. For those who have open orders, this remains unchanged as during this process
    we will work with our vendors to make sure you get the needed inventory as quickly as possible.

    Subsequently on the next page you will find some frequently asked questions about the current
    situation as I am sure many of you have additional questions.

    On behalf of my dad, brother and our loyal employees, I would like to sincerely thank you for your
    understanding and support throughout this period.

    Best Regards,

    James Paladino, MBA
    President and CEO
    #2
  3. Maggot12

    Maggot12 U'mmmm yeaah!!

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    I like this little snippet...

    In the coming weeks, the Company will establish a plan while in the CCAA process, giving us the flexibility to ensure you receive the service you are accustomed to from the last 40 years.

    They pretty much had a monopoly until the internet arrived. Dickheads.
    #3
  4. Drif10

    Drif10 Accredited Jackass

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    They had market exclusivity agreements that really taught people how to shop cross-border.

    They'd only bring in ten of an item, and if they were out for that year, tough shit. Folks learned how to get it from vendors outside of Canada who would actually fill the order.

    Always felt bad for bike shops that were stuck with them. Their tires were double the price of online. I like supporting my local gunslinger, but damn.
    #4
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  5. Tytan

    Tytan Been here awhile

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    What’s the point having a monopoly if you’re not going to take full advantage of it ? :photog
    #5
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  6. shuswap1

    shuswap1 Long timer

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    MBA? That explains a lot.
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  7. Drif10

    Drif10 Accredited Jackass

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    Talked to my local shop just outside of Kingston Ontario about this yesterday. They've gotten nothing from Motovan.

    Thing is: they never did. Not once have they ever seen or heard from a rep from them. All the others (Kimpex, Thibault, etc), they will get at least a visit, calls, mail. You know, trying to actually sell their products?

    This looks like it's pretty much self inflicted.
    #7
  8. Night_Wolf

    Night_Wolf Leg Humper

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    The beaver still on the nickles in your pocket? You are squeezing the things so dam hard, they must have left by now to build a home elsewhere :hide

    It's a 10 yr old helmet; retire that thing as it's past it's best before date :loco
    #8
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  9. Night_Wolf

    Night_Wolf Leg Humper

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    Had to check out the Chrome Burner site :hide
    #9
  10. Night_Wolf

    Night_Wolf Leg Humper

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    The_Filly & I have Klim Latitude jackets & have no need to replace them at this time; I have the 1st generation Sidi Adv Gore-Tex & I just picked up a pair for her (2nd generation) @ Christmas, from Twisted Throttle Canada on sale. While I may ride an "adv tourer" I don't wear that style of helmet :uhoh, as my "adventures" are primarily on asphalt :hide I was checking out the boots, & yes the 2nd gen Sidi Adv Gore-Tex are a very good deal, last time I checked @ Blackfoot (cpl years ago) they were $799 :becca Fort Nine has/had a sweet deal on the Bell Rogue (Ghost Recon only) for a shade over 50% off so I grabbed one for when I'm on my cruiser & might try it on the GROM. I will be checking them out further however when I am looking for gear, so thanks for the name
    #10
  11. wos

    wos Long timer

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    I believe this is the third time the brothers have run that company into the ground. Each time they received protection, liquidated what was left, fucked over the people they owed and started right back up again.
    A friend ran a small business in the 90's working on bikes in a backyard shop. He needed motovan to supply parts etc but the asinine contract he had to live by was incredible. He had to turn over several thousands of dollars worth of their crap every year. At the end of the renewal time he had to scrape through the catalogs trying to find a thousand dollars worth of crap that he might need or be able to turn around and then do it again when they were nil stocked.
    #11
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  12. shuswap1

    shuswap1 Long timer

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    Power (in this case a near-monopoly) corrupts and destroys market forces which tend to work well when left to their own devices. I would go a long way off the easy path to avoid EVER dealing with folks like this and I feel for the businesses that had little choice. The vendors in the US that granted them exclusivity are as responsible for this travesty as anyone is.
    #12
  13. wos

    wos Long timer

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    My understanding is it wasn't the US vendors but the importation licences granted by the Canadian govt. Same as the Trev Deeley exclusive deal that thankfully died.
    #13
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  14. shuswap1

    shuswap1 Long timer

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    In almost 45 years in business I have never heard of that. Do you have a link, like to know more about these 'licenses' granted by the Feds?
    #14
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  15. H96669

    H96669 A proud pragmatist.

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    So much fun looking at some Motovan catalogue! So much missing....!

    And then going to some shop for parts and watch the parts guy flip through their catalogue and say something like? Doesn't exist.....discontinued....we can't get that! Or tell you that whatever they can get is "better"....!

    Actually happened to me last summer.Not sure if he was looking at the Motovan's catalogue?

    Discontinued EBC brake pads (Not so... :D)and you need the best? I settled for the HHs as per the kid's advice but? Didn't want to wait/waste time but the recently replaced rotors at 260,000kms will probably outlast my 293k bike even running HHs for a while....!


    I wouldn't know.......been riding 2 wheelers/wrenching on them for?+ 45 yrs?

    Bye Bye Motovan!
    #15
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  16. wos

    wos Long timer

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    No links, this was how motovan and several other of my buddy's sources explained it to him 20 years ago. He was working at one of the bigger dealers before that. i also ran into other small shops with similar complaints in BC, AB and Sask. Anybody importing or setting up an importation business has to jump through the same hoops. If you doubt how corrupt our govt system is in this regard you must be blind.
    #16
  17. shuswap1

    shuswap1 Long timer

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    Thanks, just as I thought, BS. The Feds don't grant exclusive commercial licenses for these types of goods to importers, that was a deal made by the manufacturer with Motovan and they should hang their heads in shame for exclusivity....which almost always fosters poor business practices.
    And, believe me, I am under zero illusions about corrupt gov't decisions and practices. Putin, himself, called Canada one of the most corrupt countries and there is a fella that really ought to know.
    #17
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  18. Bultaco206

    Bultaco206 Back-to-back motos suck Supporter

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    #18
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  19. CDN Rick

    CDN Rick Canoodia Eh?

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    I was on my way here to post that for you...
    I hope that guy gets stonewalled into bankruptcy by every vendor he calls.
    It's too bad I like some of the reps as much as I do. Cause James can piss right off...
    Makes me beyond furious.
    #19
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  20. shuswap1

    shuswap1 Long timer

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    Back for another kick at the can, the can composed of suppliers and customers. Hopefully the suppliers/vendors refuse to grant them exclusive rights in Canada, as they did in the past. They won't get a single cent of business from me, I'll see to that. The market needs to discipline poor vendors and exclusivity interferes with normal market corrections.
    #20