In a dramatic move, American motorcycle company Erik Buell Racing has closed down all operations and has filed for bankruptcy. This move has impacted Hero’s share price which fell by over 4%.
Hero Motocorp acquired a substantial stake (about 49.2%) in the American company recently. According to the terms of the partnership, EBR-Hero had plans to sell Hero Motocorp bikes and scooters in United States two-wheeler market. Also Hero Motocorp was to receive technology and design support for its future models. However, Hero Motocorp is confident that this break up would not affect the R&D division of the company.
Erik Buell has issued a statement saying that the company was unable to secure funding and as a result, they had to shut down all operations. The move has left Erik Buell Racing’s 100+ employees out of work.
Stay tuned for more information on this topic.