GILROY
– It’s unlikely whoever buys Indian Motorcycle’s trademarks will
build bikes in this town, a liquidation official hired by the
company said Tuesday.
GILROY – It’s unlikely whoever buys Indian Motorcycle’s trademarks will build bikes in this town, a liquidation official hired by the company said Tuesday.
Meanwhile, after 12 weeks of negotiations with little to show for them, Indian Motorcycle’s asset sale is heating up.
Bill Melvin, a motorcycle collector who owns a retail liquidation firm in Grand Rapids, Mich., announced Thursday he has reached a deal to purchase all Indian’s equipment. He is still negotiating to buy the company’s real estate and trademarks, he said, but he now effectively owns all the contents of Indian’s buildings.
“We’re not sure what we’re going to do with it yet,” Melvin said of the equipment.
Melvin does, however, plan to pick up a piecemeal property auction that the Credit Managers Association of California – which Indian hired to broker the sale of its assets to pay off its massive debt load – is expected to cancel, Melvin said.
“It’s out intention to sell any of the assets that aren’t necessary to a manufacturing operation,” Melvin said.
A showing for the auction items will still be on Jan. 19 and 20, and the auction will still begin on Jan. 21.
Meanwhile, discussions are under way to determine whether the Matrix Capital investment group will drop out of the bidding or further engage in pursuing the trademarks of the oldest American motorcycle company, one of Matrix’s partners said Wednesday. Matrix has vowed repeatedly to build new Indian motorcycles in Gilroy.
Since Oct. 24, CMA estate manager Chuck Klaus has been negotiating with parties interested in buying Indian’s trademarks and its physical property in Gilroy. Indian hired CMA to sell its assets in order to pay off its massive debt.
Asked Tuesday if there is any chance of Indian’s third incarnation basing itself in Gilroy, as the second Indian did for the past five years, Klaus said, “I don’t think so.”
“I rather doubt it,” Klaus said. “That could change, but … it doesn’t look like it right now.”
Although CMA is still negotiating with several potential buyers, one – which Klaus would not name – now stands out as the front-runner.
“We are working toward closing with a particular buyer,” Klaus said. “Right now we plan on closing some time in February.”
Nevertheless, Klaus said, there is no commitment yet.
“I’ll talk to anybody until the day we say ‘sold,’ ” Klaus said.
Klaus’ statements indicate that Matrix Capital has fallen out of favor, since Matrix’s spokesmen continue to say that they would restart production in Gilroy. Gilroy resident Rey Sotelo is fronting the Matrix group, which takes its name from one of its partners, an Orange County venture capital firm.
The owner of that firm, David Huntington, said his group is still very much in the running.
“Chuck is responding to (the offers) he has in front of him at the moment,” Huntington said Wednesday, in response to Klaus’ statement about Indian’s chances in Gilroy fading.
