Yup. It’s 100% true, confirmed and real. The biggest accessory manufacturer have hit the point where they’ve not got enough money to pay their bills and have officially declared insolvency. In what is clearly dire, challenging news for the German accessory giant and its 400 employees and distributors across the globe, we looked into what happens next.
The current state of affairs
On the ground it appears like business should be able to keep ticking along for the short term, at least from a customer perspective. Most countries around the world are separate distributorships, such as Touratech UK or Touratech US. As such, any parts they have in stock are open for purchase and it’s likely they may still be able to get stock from the parent company.
Touratech UK provided us with the following statement regarding the subject –
“There has been a lot of speculation and talk over the weekend, over the press release which was sent out on Friday 11th August regarding Touratech Germany starting Insolvency proceedings. We have been informed that this is a process under German law that allows Touratech AG to restructure, giving Touratech AG the opportunity to get it working as it should be.
We would like to take this opportunity to reassure you that we have been told from Germany’s, the UK’s, and the rest of the World’s point of view, it is business as usual.
Firstly, Let me put it into some context Touratech UK, and all the distributors were all unaware of the current situation of Touratech Germany. We received an email at close of play on Friday at 17.05pm, where we were told exactly the same time as everyone else. This came as a complete shock to us.
Touratech UK like all the distributors worldwide, are independently owned companies. We are all importers of Touratech products and we have been informed that we will not be affected by the restructuring in Germany. Even though we have had supply issues in the past, we as a company have still continued to grow. This year alone UK sales are up due to the continued demand in the adventure bike market.
I can confirm from the Touratech UK customer’s point of view, nothing has changed. Touratech has been producing quality products for years and will continue to do so. The company is known for quality, innovative ideas and inspiration for adventure riders. We have been told that the production and delivery of Touratech products will continue without any interruptions during this restructuring process.
Nick and the team feel that the loyal customers of Touratech already know that the Touratech brand is the brand to be with and will be around for a long time to come. Touratech UK customers are always at the forefront of everything we do and we try to provide the right customer service culture to maximise customer satisfaction.
Touratech UK is 100% supporting Touratech Germany throughout this process, I know the Touratech brand will be a lot stronger for it.
Nick Plumb – CEO Touratech UK”
What happens next for Touratech?
This is where things are things will sit in limbo for Touratech. We briefly read into some potentially unreliable translations of German Law to get a better understanding of insolvency proceedings there. The crux of the procedure is as follows; Firstly, an administrator is brought in to sort things out. They have a huge amount of power, to organise and solve debt. Their ultimate goal is to produce a report in three months, that is the presented to a government committee.
That committee decides their fate. Option one is the dismantling of Touratech as we know it. Assets will be sold and debts paid. In Germany this is the more common scenario. Option Two is a complete restructuring program and payment plan to clear off the debt. This is the ideal situation for Touratech AG as it means they can continue to operate and make product.
In reality, the second option is more likely. A company with the current and potential revenue of Touratech should theoretically be seen as a company that can pay a repayment plan. The situation could also leave Touratech open to a takeover, especially with the value of the company dropping due to it’s current financial situation.
All we can do is wish the company, its employees and the distributors good luck in the coming months.
What do you think of the situation? Let us know in the comments below.
Did you like this article? Brake is an independent magazine, producing free content online. We aim to make detailed, honest, quality content. The downside being that it comes at a cost. If you would like to support our reviews and travel stories, you can do so for a little as the cost of a coffee. Thanks for reading!