Gas Gas Motorcycle company files for bankruptcy after running into financial trouble. The company was hoping to find a sponsor, but was not able to find any.
Gas Gas, the Spanish motorcycle company halted its spare parts manufacturing, motorcycle assembly and R&D, earlier this year. The company also asked its employees to stand by.
There were rumours earlier that KTM was interested in taking over Gas Gas, but it was denied by the Austrian manufacturer.
Trying to keep the company afloat, the government had loaned Gas Gas USD 2.2 million, but that was of little help. Gas Gas currently in debt of around USD 32.8 million.
This kind of money is quite difficult to come by, until a huge company is ready to back up the off road motorcycle manufacturer.
Another major thing to note is that Gas Gas does hold quite a good reputation in the segment.