Tag Archives: administration

Norton sold to Indian TVS motorcycle company

Troubled Norton Motorcycles has been rescued with the sale of “certain assets” to an indirect subsidiary of Indian motorcycle company TVS over night (17 April 2020).

Joint administrators BDO UK say the “cash deal” was for £16 million (about $A31.4m, $US20m, €18.4m).

However, the company owes its creditors a whopping £28,352,089 (more than $A57m).

A this point it is not confirmed how they will be paid and by whom.

Business restructuring partners Lee Causer, Ryan Grant and Danny Dartnaill say TVS Motor Company’s Indian subsidiary has “acquired the business and certain assets of Norton Motorcycles”.

It also includes a licence to occupy the existing Donington Hall factory for the next six months.

Norton Motorcycles NOT going bust!Donnington Hall where Norton continues to build motorcycles

Norton sold

“The purchaser has agreed to work closely with customers in building the success and pre-eminence of Norton, and employees of Norton will transfer to the purchaser,” the administrators say in a statement.

“This acquisition will also unlock strong synergies between both the brands and propel Norton’s growth by leveraging TVS Motor Company’s global reach and supply chain capabilities.

“In challenging circumstances, we have been able to secure the future of the Norton brand. We are delighted that the sale to TVS Motor Company will protect jobs and provide a highly beneficial outcome to creditors.”

TVS Motor Company

TVS Motor Company is the third largest motorcycle manufacturer in India with revenue of more than $A4.4 billion last year.

They also make BMW G 310 motorcycles for the world market.

TVS joint MD Mr. Sudarshan Venu says it is a “momentous time” for their company.

“Norton is an iconic British brand celebrated across the world,” he says.

“Norton with its exciting range of products presents us with an immense opportunity to cater to the aspiration of discerning motorcycle customers around the world.  We will extend our full support to Norton to regain its rightful glory.”

The administrators had more than 300 expressions of interest, 29 formal offers and was negotiating with eight potential buyers.

Administration

In January, Norton Motorcycles went into administration amid claims of pension fund frauds and a £300,000 unpair tax bill.

Almost half Norton’s £28m debt is in the 228 pension funds that owes £14m.

UK Pensions regulator is investigating boss Stuart Garner, pictured above in a UK government export campaign, over his role in the pension scheme to fraudulently fund his company.

Norton CEO Stuart Garner Norton Motorcycles“Poster boy” Garner

The remainder of the debts are to secured creditor Metro Bank (£7m) and the rest to unsecured creditors.

In Australia, importers Brisbane Motorcycles have returned deposits to those who paid for bikes not yet delivered.

Source: MotorbikeWriter.com

Garner dines out as Norton sinks

Failed Norton Motorcycle boss Stuart Garner and his wife, Susie, have been spotted dining out at elite London restaurant, The Ivy, where a steak costs about £30 (about $A60).

The photo was published on the Twitter account Notnorton Moto as another example of Garner’s extravagant lifestyle.

Meanwhile, customers, pensioners, investors, the tax department and the government are still waiting for their money as the company languishes in administration.

Garner NortonThe Garners at a Swiss watch show in 2018

At least in Australia, importers Brisbane Motorcycles have returned deposits to those who paid for bikes not yet delivered.

In January, Norton Motorcycles went into administration amid claims of pension fund frauds and a £300,000 unpair tax bill.

The UK government is now being called on to investigate almost £8m in funding and loans amid claims that Garner squandered the money on fast cars and a lavish lifestyle.

Click here to read the whole sordid tale.

Buyers sought

Norton Motorcycles Donington Hall factory crowdNorton’s Donington Hall factory

The company ceased production in February, but administrators BDO UK say they have “significant interest” from potential buyers.

BDO spokesman Lee Causer says they are “taking all necessary steps to ensure that customers, staff and suppliers are supported through the administration process, as we seek the sale of the business and assets”.

“We have had a significant volume of interest and are hopeful that a sale of Norton Motorcycles (UK) Ltd can be secured,” he says.

That’s good news for Norton fans and customers.Norton boss Stuart Garner at Donington Castle

The rumour mill has been running hot with talk of Japanese and Chinese motorcycle companies and even motorcycle fan Keanu Reeves being interested in buying the venerable brand.

A petition to Triumph Motorcycles boss John Bloor to buy the company has only received 61 signatures.

Meanwhile, another petition to the government to launch an official inquiry into Garner has almost 7000 signatures.

SuperBike Magazine claims the company’s biggest single investor, Steve Murray, could be interested in buying the company.

They say he invested his entire life savings or about £1 million for 10% equity and loaned the company an extra £500,000.

He was a company director for three months, but chose to be “hands-off”.

The deadline for bidders closed on 21 February 2020.

Source: MotorbikeWriter.com