To restructure and manage its significant debt burden, Hoonigan, the lifestyle and clothing business founded by the late rally star Ken Block, has filed for Chapter 11 bankruptcy protection. Hoonigan, a part of Wheel Pros, an aftermarket wheel firm owned by Clearlake Capital, is trying to stabilize its financial status by paying off $1.2 billion in debt and seeking up to $570 million in fresh funding.
At first, founded as Ken Block’s side project, Hoonigan became well-known because of its highly followed YouTube channel, “The Hoonigans,” which has more than 5.73 million subscribers. Many of the channel’s original performers left after Block died in 2023, which resulted in major changes to the brand’s direction.
The Hoonigan brand transformed in October 2023 when Wheel Pros renamed all of its companies under the Hoonigan name, bringing in well-known aftermarket names including TSW, American Racing, and Rotiform. The combined company racked up an astounding $1.75 billion in debt, which is what prompted the present bankruptcy proceedings, which are intended to restructure and eliminate a large amount of that debt.
In spite of these monetary difficulties, Hoonigan’s management views the bankruptcy as a “strategic transaction” meant to strengthen the company’s future growth basis. However, the brand that was formerly associated with Ken Block’s inspirational legacy and a vibrant YouTube presence has experienced significant change, raising concerns about its cultural significance and future identity.
One of the investors said, “We are thrilled to partner with, a firm that shares our passion for automotive culture and has a deep understanding of our business,” said the CEO of Hoonigan. “This investment will provide us with the resources to accelerate our growth initiatives, expand our product offerings, and continue to deliver exceptional content to our dedicated community.”
The strategic transaction will provide Hoonigan with a substantial infusion of capital, enabling the company to:
- Expand product offerings: Hoonigan plans to introduce new product lines, including apparel, accessories, and automotive parts, to cater to the growing demand from its loyal customer base.
- Enhance content creation: Hoonigan will invest in state-of-the-art equipment and technology to produce even more engaging and high-quality content across its various platforms, including YouTube, social media, and Hoonigan Racing Division.
- Strengthen partnerships: Hoonigan will seek strategic partnerships with other automotive brands and industry leaders to expand its reach and create new opportunities for growth.
- Fuel international expansion: The company will explore opportunities to expand its operations into new markets, both domestically and internationally, to capitalize on the global popularity of the automotive culture.
About Hoonigan
Hoonigan is a leading automotive lifestyle brand and media company that produces engaging content, events, and products for a global audience of automotive enthusiasts. The company’s popular YouTube channel, Hoonigan Racing Division, features high-octane stunts, car builds, and competitions that have captivated millions of viewers worldwide. Hoonigan also offers a wide range of products, including apparel, accessories, and automotive parts, through its online store and retail partners.
