Norton Motorcycles in administration for unpaid taxes
Norton CEO Stuart Garner has had three of his businesses placed under the administration of the BDO Accounting Group which have been tasked with overseeing Norton Motorcycles, along with Garner’s Donington Hall Estates and Priest House Hotel.
This does not guarantee that Norton Motorcycles will be wound up, yet, but as reported in The Guardian, Norton’s own accountants noted the following themsevles in the most recent set of official company accounts.
“[Norton is] dependent on the future financial support of its bankers and its creditors … a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”
The appointment of administrators follow Norton being pursued by the British Government over unpaid taxes that saw Garner and Norton representative recently called before the courts to try and prevent a winding up order being issued by HM Revenue & Customs.
Lee Causer, for administrators BDO
“Our job is to determine and execute the most appropriate strategy as swiftly as possible to protect creditors’ interests, bearing in mind the need to minimise distress for all parties. We are currently assessing the position of each of the companies in order to conclude upon the options available to them and the most appropriate way forward.”
What does this mean for Norton owners?
If Norton fail to get up again what will this mean for the few owners that actually took delivery of their machines from the latest incarnation of the company?
There can be no concrete answers on that score but one would predict that, initially at least, values will tank downwards quite comprehensively, before then slowly recovering back towards somewhere in the middle ground. If the experience of Bimota owners is anything to be guided by, that is how the situation might play out from here…
That is if of course if the company is actually wound up and production ceases, and that fate is still yet to be officially decided by the beancounters…
Those people who have put significant money down as a deposit on a new motorcycle, that is yet to be delivered by Norton, could be in an even worse position.
Norton at the TT
Norton’s Australian distributor James Mutton
“It’s obviously a very sad day for the brand as although we have had no official news from anyone at Norton Uk or Stuart Garner, it appears that one of the most iconic brands in motorcycling has been unable to survive the current pressures on the industry.
“Australian and New Zealand customers that have placed deposits for new models with their local dealer will be able to receive a full refund for orders, however we are not sure what is in line for those that placed orders prior to our distribution with the factory directly.
“We will obviously do our best to put those customers in touch with the correct people in the UK. In regards to existing norton owners, we still have good stock of servicing parts, and will still be operating to ensure our customers are looked after.
“Ultimately we hope a larger brand with more experience will come in and continue the brand, however this is purely speculation and we have had no official correspondence.”
Source: MCNews.com.au