It’s official—Hoonigan has hit the skids. The famed motorsport brand has filed for Chapter 11 bankruptcy protection in Delaware, aiming to restructure operations and claw its way out from under a staggering $1.2 billion debt pile. The plan? Restructure, shed that debt, and secure around $570 million in new capital, all under a Restructuring Support Agreement (RSA) inked with its creditors. The goal is to emerge within two months with a new lease on life under the majority ownership of its current lenders.

Hoonigan’s woes trace back to October 2023, when it became the face of Wheel Pros, LLC, following a rebrand. Wheel Pros, which has been around since 1994 designing and selling aftermarket wheels, tyres, and accessories, merged with Hoonigan in September 2021 during a post-pandemic acquisition spree when, according to CEO Vance Johnston’s affidavit, the company was riding a wave of “tremendous growth.”

But that wave crashed hard. Clearlake Capital acquired Wheel Pros in April 2018 and went on a buying spree, snapping up five companies between June 2018 and December 2020. Expansion included two new facilities in the U.S. in 2018 and 2020 at a cost of $12 million, plus additional investments—moves that ultimately backfired. One facility was largely divested in late 2021, while the other shuttered entirely in early 2023.

Hoonigan, along with other pandemic-era growth stories, quickly ran into trouble as supply chain issues and rising interest rates hit hard. Costs, like the price of aluminium, doubled between 2020 and 2022, just as demand was booming. Revenues soared from $844 million in 2019 to $1.5 billion in 2022, but the good times didn’t last. By 2023, the demand drop-off was stark, revenue tumbled, and earnings targets were missed, forcing the company into survival mode.

Despite the chaos, Hoonigan insists it’s business as usual for employees, customers, vendors, and suppliers. Implementing the RSA is seen as a lifeline to improve the balance sheet and keep the brand’s rebellious spirit alive. But as the company’s future hangs in the balance, it’s now up to the court to decide if Hoonigan can burn rubber once more or if the chequered flag is in sight for good.