| Author | Message | ||
     89rs1200 |
Afternoon All, Just received an email from Liquid Asset Partners <marissa@liquidap.com> Liquidation of Iconic EBR Motorcycle Factory EAST TROY, WI - EBR Motorcycles (Erik Buell Racing) of East Troy, WI, one of the largest American manufacturers of superbike motorcycles, has not secured a new investor and intends to consolidate its long-term parts for dealer and warranty support. Liquid Asset Partners, of Grand Rapids, MI will hold a piecemeal liquidation sale and live auction at EBR’s state-of-the-art factory for all remaining assets. They will sell the factory assets in a two month on-site liquidation sale starting June 7, with a live auction June 8 that will include the state-of-the-art intellectual property and tooling used to manufacture the EBR Motorcycles, all factory production equipment, and many historical artifacts in the factory. “This is the motorcycle deal of a lifetime,” said Bill Melvin, CEO of Liquid Asset Partners. “For any motorcycle fan the deals are too cheap to miss. You can buy anything from a race motorcycle, hand tools, and all the way to buying the iconic motorcycle brand itself. We sell at such huge discounts, people fly in from all over the world! Some people will start a new business just from buying these deals.” The sale will be held in three parts: The onsite public liquidation sale will start June 7 at the factory with tons of parts, tools, and historical items for sale piecemeal and will continue for two months. The public auction will be on June 8 at the factory and will include the factory production equipment, test equipment, and numerous additional lots, including the intellectual property of EBR Motorcycles and production tooling located at suppliers across the globe. The excess motorcycle parts, over $15 million at retail worth of inventory will be liquidated through a discounting process through the standard parts ordering process. “This will represent the largest factory liquidation of sport motorcycle manufacturing facility,” said Melvin. “These super bike parts and equipment, which are rolling art, are selling at enormous discounts, right off the factory floor. With the sale 30 minutes from Milwaukee, the motorcycle capital of the World, it is quite a sight to see the factory in person. The sale is open to the public, and they can buy not only the motorcycles parts, but also the tools and equipment from which they were made.” “We have no illusions, the market is very soft and we are prepared to deeply discount everything,” said Melvin. “It’s stacked high and we’re selling it cheap. Everything must be sold regardless of cost or loss. The public won’t want to miss these deals.” The liquidation sale starts Wednesday June 7 at 10:00 a.m., the live auction starts June 8 at 10:00 a.m. Buyers may view the assets online at www.LiquidAP.com or come directly to the factory on June 7, to see where and how they were made. Contact: Marissa Winter (616) 719-5917 Email: Marissa@LiquidAP.com | ||
| Ducbsa |
The vendor list, CAD files and specifications for all the bought-in pieces would be nice to have, so that there would be a chance for some future parts supply. | ||
| Lake_bueller |
Curious on what "historical items" are being sold. | ||
| Buelliedan |
said Melvin.“It’s stacked high and we’re selling it cheap. Everything must be sold regardless of cost or loss. The public won’t want to miss these deals.” Seriously??  | ||
| Oddball |
Mad Melvin's Motorcycle Mega Sale "Come help our vultures pick the carcass clean. Our prices are Insane!" | ||
| Stevel |
It is clear to me at least that the only thing of value from EBR worth acquiring are all the engine drawings. Since there will not be another resurgence of this engine, there is little if any commercial value for these drawings. They are all in a digital format and are easily distributed. Along with these mechanical drawings would be a list of part suppliers. Both of these will be very important to the ongoing maintenance into the future. I am very curious how these will be disposed of and to whom they go. In line with this thought, perhaps Melvin would consider building a digital package and sell those for some value to as many as interested hundreds or more times. There could be many marketing schemes to do this. I believe this has more cash value than a sale to a single buyer. (Message edited by steve-l on May 27, 2017) | ||
| Hybridmomentspass |
Smart thinking Steve Ive very tempted to do another drive up to WI for some stuff... | ||
| Hughlysses |
The current problem is LAP requires a deposit of $100k to even bid on the IP: https://www.proxibid.com/aspr/Liquid-Asset-Partner s/4305/AuctionsByCompany.asp?ahid=4305 The only company I can imagine that might be interested in acquiring the ET-V2 IP would be BRP-Rotax, but they've probably moved on to more-advanced designs by now. I'd guess that the most valuable IP EBR has is for stuff we haven't even seen yet, like the promised sub-$10k model that Erik has teased on a couple of occasions. | ||
| Stevel |
Hugh, I know that is the current scheme by LAP, but I'm pretty sure that there will be no takers. As I stated above, Melvin needs to package the IP and flog it to the public. Here, in this community there is interest, but not in the commercial arena. LAP's expertise is disassembly and sale. Why should EBR's IP be any different? | ||
| Hughlysses |
Steve- I agree your idea makes a lot of sense. Perhaps they are hoping someone is interested in the "secret" IP and will be willing to pay for the 1190 IP as part of the deal? I guess they figure they have nothing to lose by attempting to sell it that way. If the first approach is unsuccessful, perhaps they'll try something else. | ||
| Hughlysses |
Here's some clarification on what's happening regarding parts, the sale, and the auction (taken from an EBR rider's Facebook post this morning):
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| Hybridmomentspass |
Thank you for posting. I need to contact them about some parts, but also I am thinking of going up to buy things. Waiting for them to update the 'catalog' of parts that will be for sale | ||
| Hughlysses |
List of auction items is up on LAP's site. Check out the requirements for items 100 (IP & tooling) and 101 (licenses, name, etc.). Both seem to imply dealers and current bikes are required to be supported for 10 years? | ||
| Stevel |
Hugh, I don't think it is enforceable to a company that doesn't exist, but does that mean LAP owns the problem or is it non-existent EBR? | ||
| Hughlysses |
Good question. People who should know repeatedly said that there was no legal requirement for HD to continue to support Buell past the warranty period, but this seems to imply that LAP/EBR is required to provide support for the bikes they built for 10 years. | ||
| Hughlysses |
Link to list of auction items: https://www.proxibid.com/asp/Catalog.asp?aid=12829 1 | ||
| Hybridmomentspass |
Not looking like I'll be making a trip up Last time was a bunch of parts etc, this is,mostly, just manufacturing items. A) 99% will be beyond my budget B) 99% wouldnt fit in my car ha I'll email them about the liquidation sale I dont mind driving up if I can get a decent deal on something | ||
| Greg_e |
Had a couple race only bikes listed, and a Black Lightning. | ||
| Mnscrounger |
Crusty's gotta be both bummed and relieved. Even if he hadn't leveraged himself with his new home, the one Black Lightning, no matter how low the liquidation price, with no MCO can never be his dream road bike. (100% pure speculation) Is it possible what's up for sale is the IP for future models, and the current EBR line parts inventory and support is going to be for sale separately as a going business entity to be manufactured wherever the new owner chooses? Presumably the new owner in this scenario would already have manufacturing capabilities, and so would not need another assembly point and all the equipment. | ||
| Froggy |
If I'm reading it right buyers will be paying out the nose in fees and taxes. | ||
| Snacktoast |
18% buyers premium from what I saw. What were the tax amounts? | ||
| Froggy |
I'm seeing 5.5% sales tax on the terms page, and also mention of a 18% internet premium, I don't know if that is in addition to the buyers premium. | ||
| Dave |
LAP spelled out fees and shipping to the letter last time - I'm seeing 18% internet premium + 18% buyers premium + 5.5% tax. I imagine Marissa at LAP could shed light on if an in-person bid removed the 18% internet premium. DAve | ||
| Greg_e |
With 36 percent, bids will be super low. | ||
| Snacktoast |
Here are the terms of sale: Sales Tax : 5.5% - Sales tax applied to existing total, excluding any additional fees. Internet Premium: 18% Participation Requirements: Valid Credit Card required for bidding approval Payment Options: Visa, MasterCard, Discover, American Express, and Wire Transfer Terms of Sale The highest bidder for each lot shall be the buyer, and if any dispute arises as to any bidding, or between two or more bidders, at the sole discretion of the auctioneer, the disputed lot shall be put up again at the last undisputed bid and resold. Buyer's Premium LIQUID ASSET PARTNERS LLC will charge and retain a non-negotiable 18% buyer's commission from the proceeds of any sale on the final bid of each lot sold ('Buyer's Premium'). Taxes Where required by law, Buyer shall pay to LIQUID ASSET PARTNERS LLC sales tax. Tax will be added to the purchase price of all purchased items, as well as the Buyer's Premium. At the time of payment, dealers who purchase for resale must supply LIQUID ASSET PARTNERS LLC with completed copy of the tax exempt form, call our office if you need such a form 616-719-5917. Payment Only credit cards, wire transfers and certified cashier's checks are acceptable methods of payment. PLEASE NOTE - WE CAN ONLY ACCEPT CREDIT CARDS FOR UP TO $5,000. Your credit card on file will be charged your invoice total at the conclusion of the auction if below $5,000. If over $5,000 you are required to call Liquid Asset Partners at 616-719-5917 to obtain a wire transfer sheet to complete your payment. Bidders with invoice totals over $5,000 will be required to pay via wire transfer or certified cashier's check. Please contact Liquid Asset Partners at 616-719-5917 for our wire transfer instructions. Bidders are required to pay for their purchases immediately after the conclusion of the auction. Payment is due in full within 24hrs after the end of the auction. Full information can be found here: https://www.proxibid.com/asp/Catalog.asp?aid=12829 1 (Message edited by snacktoast on June 01, 2017) | ||
| Snacktoast |
With 36 percent, bids will be super low. That's how I read it too...plus sales tax. 18% buyer's premium 18% internet premium 5.5% sales tax. Ouch.  | ||
| Hootowl |
And you have to pay tax on the premiums. | ||
| Greg_e |
The tax on the premiums really makes it hurt. Not opposed to the sales tax on the price of the item, but adding it to the 36% fees is too much. There are some lift tables I'd like, but with the fees, and the gas to get them, not worth buying for more than about $50. Hopefully a collector will buy the Black Lightning, but again with the fees it will probably go cheap. | ||
| Buelliedan |
that amount of fees is ridiculous. Standard auction fees is 10% for the buyer plus sales tax. Does LAP use an outside auction company or do all these extra "fees" go right into their pockets? I really, really do not like the Melvins if you cannot tell!  | ||
| Snacktoast |
I really, really do not like the Melvins if you cannot tell! I can understand your sentiment. I think many involved were, unfortunately, sold a bag of goods that ended up being...let's call it **biting my tongue really hard** less than 100% transparent. |
