Inside Motos America’s Chapter 11 bankruptcy filing

Motos America will use a prepackaged restructuring plan as part of its Chapter 11 bankruptcy filing to renegotiate private credit obligations and stabilize its capital structure. [caption id="attachment_58358173" align="alignright" width="239"] Vance Harrison, CEO, Motos America[/caption] The motorcycle dealership network entered bankruptcy proceedings on Dec. 31, 2025, after its liquidity was strained when a key financing partner collapsed following rising interest rates and tightening capital markets, Chief Executive Vance Harrison told Auto Finance News . The company’s Chapter 11 plan received creditor support and keeps its 4 dealership locations operating as normal, since they exist outside of the bankruptcy proceedings, Harrison said. Motos has cut corporate expenses 80% in the months preceding the bankruptcy filing as it shifts toward slower, more controlled growth as a private company with Harrison more involved in the operations. “This is not the end of Motos America,” he said. “It’s a reset that allows us to rebuild the right way.” Lead up to bankruptcy Motos America initially pursued an acquisition-driven growth strategy using a public shell company, but rising interest rates, higher compliance costs and tightening capital markets during the pandemic strained capital access, Harrison said. The company later fell out of compliance with audit requirements, was delisted for the over-the-counter market by the SEC and returned to private ownership, which reduced regulatory costs but did not resolve its funding challenges. In early 2024, the company’s $15 million leveraged credit facility with Prime Capital Ventures collapsed due to alleged fraud by the lender against all of its clients, Harrison said. That cost Motos America about $3 million in pledged cash and eliminated access to the warehouse line, adding to the company’s financial woes. “We had to go out and raise additional funds to make up for that, and at the end of the day it became too expensive,” he said. “It was through private credit firms, which [have] higher interest rates, not traditional financing, not traditional banks, and so, investor money and private credit became our lifeblood.” That capital approach became unsustainable by late 2024 and led to negotiations with creditors and shareholders on a court-supervised restructuring, Harrison said. Now, the company expects to emerge from bankruptcy within 60 to 90 days. Current market conditions Despite the turmoil, Motos America saw an 11% increase in unit sales last year and increased lead volume, Harrison said, without providing specifics. The company’s dealership portfolio remains profitable, supported by stable demand for its premium motorcycle brands such as BMW Motorrad and Triumph , he added. “The business model works. The dealerships work,” Harrison said. “What failed was the way we funded the company.” Meanwhile, in the wider powersports market, average sales declined 4% in December, down compared with a 2.2% increase in November, according to a BMO powersports research note released today. Inventory levels were slightly higher, and dealer outlooks modestly improved despite concerns about high interest rates and weak consumer confidence. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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Inside Motos America’s Chapter 11 bankruptcy filing

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