Ken Block's Hoonigan files for bankruptcy

The bankruptcy though doesn't necessarily indicate the end of Hoonigan.

According to reports, Hoonigan - the lifestyle brand founded by Ken Block, has filed for Chapter 11 bankruptcy protection. The company rolled into a high-profile merger with aftermarket wheel company - Wheel Pros, owned by private equity firm Clearlake Capital. The equity firm is now said to be attempting to discharge $1.2 billion in debts and raise up to $570 million in capital.

The company was initially founded as a clothing and lifestyle brand by Ken Block. However, it was best known for its "The Hoonigans" YouTube channel. The merger with Wheel Pros took place 16 months before the passing of Ken Block. In October 2023, all the businesses under Wheel Pros were rebranded under the Hoonigan name and now include former brands like TSW, American Racin and Rotiform; among a few other automotive aftermarket suppliers.

As per court filings, the combined company reportedly has $1.75 billion in debts, which includes the $1.2 billion that the bankruptcy is expected to remove.

Reports though suggest that the bankruptcy doesn't necessarily indicate the end of Hoonigan. However, it remains to be seen what emerges post the Chapter 11 filing.

Source: Road&Track