Hoonigan Is Now Bankrupt

Hoonigan, the automotive giant created by the late Ken Block, has filed for Chapter 11 bankruptcy. According to filings with a Delaware court, Hoonigan’s game plan is to restructure its operations having discharged a massive $1.2 billion in debt while securing some $570 million in capital. The latter of those two figures will hopefully come from a Restructuring Support Agreement (RSA) that the company has entered with its debtors (of which there are so very many).

It’s worth noting that Hoonigan emerged as the face of Wheel Pros LLC in 2023, after a 2021 merger. Hoonigan was picked up by the brand amid a run of post-pandemic purchases. Clearlake Capital, the company that owns Wheel Pros, also bought TSW, Throtl, MHT, Gorilla, and others from 2018-2023.

During this period, many of the faces enthusiasts have come to associate with the brand, like Brian Scotto, Vin Anatra, and more departed the brand and its massive YouTube content operation. Reasons for the departure of these key figures vary, but speculatively, it’s possible the influence of the Wheel Pros acquisition and rebrand played a role.

In 2023, revenue had begun to fall despite strong growth — the company made $1.5 billion in 2022 — but earnings targets were missed. Wheel Pros also bought property that it eventually sold after it failed to provide a return in 2023. Should Hoonigan’s creditors agree to the RSA, operations won’t be suspended. Should the Delaware court say the RSA isn’t going to work, then it’s possible Hoonigan could be sold. What any of this means for Hoonigan’s media arm, which includes its YouTube channel, isn’t clear. However, we’ll know in early November whether the court approves (or doesn’t approve) the RSA.

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