Excelsior-Henderson Gone Forever?
EXCELSIOR-HENDERSON GONE FOREVER?
ROUNDUP
EXCELSIOR-HENDERSON, re-born eight years ago as a challenger to Harley-Davidson, may be down for the count.
EH Partners, the Florida-based investor group that once claimed it would re-start production, has done little but sell off assets since it took control of the company last fall in a Chapter 11 bankruptcy proceeding.
In January, dealers were told parts orders would require cash on delivery, and “parts availability to the field may soon be terminated.” The new owners also sold the bikes that were on display in the company’s Belle Plaine, Minnesota, headquarters. These include the first Super X and a 1905 Excelsior.
“We arc disappointed about the developments and have grave concerns regarding those who are involved with EH and their apparent disregard to the plan of reorganization filed with the bankruptcy court,” said company founders Dave and Dan Hanlon. Neither has been active in the company since last fall.
Besides cashing out assets, EH Partners has left a trail of unpaid bills. Butch Donahue, a Delano, Minnesota, dealer and a former board member, says he’s lost upward of $200,000 on warranty repairs. The state of Minnesota, which lent Excelsior-Henderson $7 million, also appears to be in a no-win situation. Recently, a state district-court judge ordered the seizure of office furniture to satisfy debts. A manager for the furniture-leasing firm, after having visited the company twice, said in court documents, “I would conclude that there has been a total cessation of business activities at ExcelsiorHenderson.”
Even the Hanlons have been shortchanged, say former employees. They were due $150,000 each under a one-year contract, but have received only a token payment. Of course, company stockholders, who raised nearly $100 million in total financial backing, including a $30 million initial public stock offering, have felt the most pain. Their investment was wiped out in the bankruptcy reorganization. The new owners were required to put up only $4 million in exchange for control of the company.
EH Partners continues to control the plant that briefly produced Super Xs. Vickie Jones, a spokeswoman for landlord Ryan Companies, said EH is not in default on the building’s lease terms.
Terry Fiedler and Tony Kennedy
