Racecar maker with Baja 500 wins files Chapter 7 bankruptcy

The car manufacture has faced economical distress successful the past twelvemonth that led to bankruptcy filings and concern closings.

Most troubled businesses mention galore of the aforesaid issues that are causing problems, specified arsenic rising labour and merchandise costs driven by inflation, higher tariffs, accrued involvement rates, and consumers' changing attitudes toward spending successful uncertain times.

New car income person been slowing astatine the opening of the twelvemonth and whitethorn proceed further into 2026, according to an manufacture expert.

"Sales slowed successful the 4th fourth of past year, and that inclination is expected to proceed into the commencement of 2026," Cox Automotive elder economist Charlie Chesbrough said successful the company's 2026 forecast successful precocious January.

"The marketplace is slowing owed to ongoing concerns astir the U.S. system and persistently precocious new-vehicle prices," Chesbrough said. "These marketplace conditions are expected to beryllium large headwinds for the caller marketplace passim 2026."

And now, the car manufacture starts the twelvemonth with a bankruptcy filing, which volition effect successful the demise of the company, unless idiosyncratic buys the institution to revive it.

California-based off-road racecar shaper Alumicraft LLC filed for Chapter 7 bankruptcy liquidation, facing millions successful liabilities, including a assertion of implicit $15 cardinal successful a wrongful decease lawsuit, and a mates of security cases involving State Farm Insurance, Edthat reported.

Alumicraft manufactured 2 off-road motortruck models, Unlimited and Spec; 3 off-road buggies, Class 1 AWD, Class 1, and Class 10; and 3 dune buggies, A2, S2, and S4.

The Santee, Calif.-based automobile shaper filed its petition successful the U.S. Bankruptcy Court for the Southern District of California connected March 3, listing astir $16.7 cardinal successful liabilities and astir $22,700 successful assets.

The debtor volition not person funds disposable to wage unsecured creditors aft administrative expenses are paid, according to the petition.

The lion's stock of liabilities consists of claims totaling $15.76 million, including a $15.23 cardinal judgement assertion from the property of Brian Kuhnhenn and a assertion of implicit $401,000 successful lease payments by Split Mountain Industrial Properties.

Alumicraft listed a secured assertion of implicit $954,000 from Matthew Fleming, consisting of a lien connected equipment, receivables, materials, deposits, and slope accounts.

The debtor's gross had declined importantly implicit the past 3 years, falling from $3.63 cardinal successful 2023 to $2.98 cardinal successful 2024, past plummeting to astir $370,833 successful 2025.