The $1.2B Hoonigan Bankruptcy Is INSANE

[@AlexMartini.]

There's a lot of history in Hoonigan; once WheelPros. From the mid 90's, Wheelpros has been on frenzy of finding automotive brands to buy and consolidate; that's nothing new. The key here is Wheelpros went from acquiring wheel only brands for B2B expansion, into things they shouldn't. The blame of Hoonigan's downfall I place on folks who thought the success of 2020 revenue meant they could buy and run anyone they wanted. Hoonigan, Throtl, the operation of a full on wheel factory, and more. I don't blame the brands themselves, but the key folks behind the scenes who treated the brands that we loved as just another pawn in their acquisition strategy. As I say this, know i'm not a golden knight. I'm super passionate about making MartiniWorks the best place for folks to mod their car and I hope one day I get the opportunity to work with new brands like Wheelpros/Throtl once did; but I don't ever plan to treate brands like this. There's an element of respect I feel has evaporated from this industry the moment PE came into it and that couldn't be more apparent than when you see the very souls and founders of these companies leaving or getting shafted and to me; that's messed up. Let me know your thoughts below, thanks for watching. Subscribe and if you ever need car parts, mod your car with folks who give a hoot at martiniworks.com/

[@criticalevent]

This is what private equity does, they buy companies with good credit, load them up with debt, pull the capital out and screw everyone by declaring bankruptcy. You'll be doing this same story again for Donut soon.

[@Leistung.Autohaus]

You're close. Ken sold years ago! WheelPro fucked Hoonigan once they owned the name. This is a business move that is allowed and a major chunk of $$$$$ to be written off! Hoonigan isn't broke, Wheelpro is and they are trading under Hoonigan so they can continue trading because they know the Hoonigan name will get them funding!

[@MrMadvillan]

lots of history… the 90s lol ca’mon man. they have less history than chipotle. This is kinda the issue; people are so quick to hype up every short term project like they’re going to be a legacy business. Not every company has to last forever.

[@criticalevent]

@@Leistung.Autohaus Yup, these companies fake interest in whatever business they are buying up, to keep the cash flow going long enough to rob the place blind.

[@FerdinandZebua]

When Alex says WheelPros has history from the '90s he's talking about the WheelPros corporation _before_ it bought the Hoonigan brand. And Hoonigan the Ken Block "make cars fun" company is and was a separate entity. I know it's complicated. Take a breath. Easy, easy does it...

[@adamphilpott1732]

Changing the mission statement is a HUGE disrespect to Ken Block.

[@stumpasdasda]

0:12 change your name to bot

[@writehse]

💀bruh

[@Bigchuckers]

Ken sold it. That was the end of it related to him. Get past the emotions.

[@Fossillarson]

100% calm down hecwashed his hands of it bc he forseen what is now ! 😅​@Bigchuckers

[@davidronevicz6207]

He's looking down and just shakin his head... Shame on all of them.... RIP Ken Block.

[@Rogers1977]

What hurts me the most is that this is really "Wheelpros" who is DBA "Hoonigan" tarnishing the reputation and good name that Ken Block and Brian Scotto built.

[@AlexMartini.]

Yeah, what's tough is making the video and having folks be upset that I am calling it Hoonigan...but that's the name of the business now. On the internet (IG), folks think Wheelpros and Hoonigan aren't the same and it's causing a mess. However, I hope the folks can get through this and come out better after; just a shame it had to be to another set of awesome OG brands.

[@coreytrevor3910]

@@AlexMartini. Let's be fair, Hoonigan was on the way "down" before KB43 passed......It got worse after that because all of a sudden what made Hoonigan great in the first place was KB43. So for a lot of us OG fans it was easy to support Hoonigan, it also got a lot easier when the YT channel took off and you got to meet guys like Scotto, Hert, Vin, Zach, Ron and Danger Dan. So you had this person in KB who could funnel fans into this media giant and keep them there. Mix in merch and all the cool media they did off YT. Sponsoring drivers and all kinds of things. The said part is KB created something that felt like it would never be corpo.....so it hurt a lot of us when after he passed it got sold. This bankruptcy isn't the death of Hoonigan, this is just the final nail. Hoonigan died when KB did.

[@metatron5199]

@@coreytrevor3910facts! 💯

[@fragdude]

For a moment there I thought you meant wheelpros owned DBA, which is a serious auto/motorsport parts manufacturer. This is just your typical over leveraged merger bs that American companies have been doing.

[@slimmike22]

It's so sad that Ken's legacy has been tarnished in this way. They never should have sold out to the b******* corporation to begin with. I hate that this is happening in Ken's entire life is being auctioned off. It's so sad to see the way his estate has been handled. Rest in peace to a legend.

[@andydhillon1977]

I'm wondering if I can sneak my debt into that bankruptcy. 🤫

[@AlexMartini.]

What's a few more couple bucks eh?

[@andrewsimckes5748]

You can't because Clearlake beat you to it there is guaranteed a few line items in the books that paid them fees for the sales of property instead of keeping it in the business.There was just a hospital group that got flushed and they in fact did that same thing so go look for Massachusetts hospital group that went under you will see what likely happened here pe knows how to get theirs it us just like a mob bust out see Goodfellas for that explanation

[@rogerwilco1777]

I'm like 10k in debt and its keeping me up at night.. if i had a billion in debt I'd be looking at launching myself into space.. mars doesnt have any money laws yet right??

[@KERBROES]

​@rogerwilco1777 if you are 1.2b in debt an an individual the bank is panicking not you 😅

[@DustinHasVideos]

Maybe the real $1,200,000,000 in debt is the friends we made along the way

[@AlexMartini.]

The best comment 🎉

[@izack0128]

Lmao 🤣🤣🔥

[@tubeeroo]

This is gold. 😂 they can try paying their creditors with this.

[@FtungusAmungus]

A friend in need's a friend indeed, a friend with wheels is better.

[@makaveli087]

@@AlexMartini. I'm donating 500 in *Thoughts & Prayers* - You got match, fam?

[@Project_Flat4]

Seems like whenever “big business” gets involved everyone loses 👀

[@AlexMartini.]

It doesn't have to be that way though, ya know? it's like there's a way to do it right but for some reason we just keep avoiding that path COMPLETELY.

[@fastinradfordable]

@@AlexMartini.if it always happens when they do get involved. Then YES IT DOES HAVE TO HAPPEN Literally

[@Project_Flat4]

@@AlexMartini. Agreed, and unfortunately it tends to be the smaller companies they own, and the consumer who hurts the most

[@Steveosupremeo]

This is why should have many independent companies that don’t offer a public option. When you go public you make boneheaded decisions to appease investors.

[@ashishpatel350]

hoon wasnt that profitable. hence they sold it to another comapny

[@sirhcmi3]

Massive company overcommits and walks away with the cash while the employees leave with empty pockets? Totally not typical 😢.

[@j.sarnak1391]

Do people really still believe this is a mistake? Or a 1 in a million bad luck? Come on this is our totally fake "freemarket Capitalism" Mega Corporations now have bought up the politicians and they have "protections" written in, do you all remember Too big to fail ? This is considered good business

[@maegenyoungs2591]

You can’t sell $10,000 sets of wheels and expect it to be sustainable, sema cars aren’t enough when you have 20 companies doing the same.

[@sunnohh]

It was a viable business in like 2004 lol

[@gotyoutriggered.8644]

That's not true. They just don't have demand. Forgiato is still doing fine with wheels more expensive than $10,000

[@REAPER3fitty]

​@gotyoutriggered.8644 that's literally what they said. Too much demand. Not enough people ables to drop fuck you money on show cars or drift shit when they're is companies that are doing and and have been doing it longer

[@dsfs17987]

that isn't the business model, their model was to pretend to be larger than life, borrow all the $$ they could get their hands on, and then buy out every buddys stock they could, made all the buddies very rich, and then just bin it - say, oh, sorry, didn't work out, here are all the assets, deal with creditors, I'm out and then collect a small % from all the buddies that sold out to them, retire to bahamas or whatever

[@HawkEM2]

Keep up these videos man, it really does help to see all the chaos put together in one reliable place with a great personality behind it all

[@AlexMartini.]

Thanks for the comment! It means a lot to hear this and I hope the next one we do is a bit more positive! haha

[@joerogers1364]

Yes, keep them up… but… it’s gotta be legit crazy. This one is crazy, that NASCAR crash gate was too, but if there’s nothing BIG you gotta skip a week, or 2, or so. I don’t want you to fall into that manufactured controversy click bait guy. Btw, Stelantis is imploding…. Maybe watch and see, but they look like they’re gonna implode.

[@scottm6130]

I agree 100%. Alex's videos are the only reason a lot of us have any understanding of the clusterF... bomb that seems to have been dropped on us all. Corporate greed kills business''s in a fraction of the time they took to create. It's a shame there's no way to protect them.

[@cleoking6693]

I started working for 4WP, then we were sold to Polaris, then Polaris sold 4WP for $50 million to Wheel Pros. Doing this, Wheel Pros liquidated damn near the whole company. Laid me and thousands of workers off back in 2022. I JUST received, today, paperwork from the US Bankruptcy court stating Wheel Pros has filed Chapter 31. I say, KARMA IS A B. I hope ALL of these companies go down. We worked really hard in different temperatures inside those warehouses. Moving their products, dealing with their clients, dealing with the truck drives, etc. and they just casted us to the side like nothing. I hope they all go down and stay down. And BTW, Polaris bought 4WP for over $600 million. Look at what they sold us for! They ONLY bought the company because they needed the assets to fight the LAWYERS and pay the families for the wrongful death suits. There was so much corruption going on over the years. And the rat owner of 4WP still made out like a bandit....

[@robfizzle3091]

I spent 15 years at 4wp, while it was still owned by Greg. WP has ruined a whole niche. I went to a smaller shop because a regional manager kept promoting his buddies and overlooking their bad habits and shortcomings. It was good here to still do business with trans but WP killed delivery and customer service.

[@truthbeats]

I worked at the Wheelpros in Auburn, and got fired because of a neck injury. The plant manager left before getting caught laundering money and keeping our bonuses. 3 months later, they shut down. Sidenote: deburrig wheels sucks and the smell of coolant never leaves your clothes.

[@Lentsnh17]

I used to work in that same facility when it was owned by the German company Borbet. I still have PTSD from that facility and the smell of paint and coolant is permanently in my nose. I was written up for standing in front of a fan (to cool off from the 97° temperatures inside) only to walk out on lunch and never return.

[@roguesyndicate4097]

I feel bad for Brian and the legacy of Ken.

[@AlexMartini.]

Good news, Brian looks happy as hell and I love that for him. He deserves that and since he's a wicked smart dude I have no doubt his next adventure will be equally awesome. (I just want some of his avocados)

[@NickTaylorRickPowers]

His legacy isn't defined by this and had nothing to do with him Brian made bank and can laugh at these fools

[@Sodanium]

@@NickTaylorRickPowers I mean Brian did sold out so i really don't understand the praise. Everything is getting sold out for big corp but in the end they had a choice. Keep the brand sake or fuck everyone praising the brand i am loaded.

[@Catbert814]

They're the ones who sold it

[@ghostrider-be9ek]

how can ken cock have a 'legacy' of something he banked off and sold out?

[@linvesel]

Nothing strange happened here. Company grew too fast with too many acquisitions and thus sealed its fate. Wouldn’t be the first conglomerate to choke itself with its growth. On a side note, my friend’s “forged” rotiforms were out of round. So were my gorgeous cast rotiforms (and their replacements). Replaced mine with TSWs and those were perfect. I’m hoping TSW will survive and quality won’t suffer. P.S.: I’m also looking forward to Wheel Pros acquiring Procter&Gamble, Philip Morris and Dell Computers.

[@desertriderukverun1002]

I’ve worked in many different industries. The bottom line is if the owners are business school smart, but don’t understand the customer and the product or service, they will run the company into the ground.

[@Daijyobanai]

Business schools are the worst thing to happen to business in the history of mankind. They produce graduates who have no imagination or original thought, and think debt is the only way to grow. While paying out all the profits to the debt owners (including shareholders) while the business retains no profits it can use to grow, so then they take on more debt. its an all too fragile way to create growth, but get-rich-quick schemes are what business schools teach.

[@jkrzeminski]

Top tier rant. Educational, opinionated, energetic. Really good content beginning to end. Alex Rantini

[@rydirban]

The smells of the corruption that lead to the Toy's R Us bankruptcy.

[@rickh6963]

Leveraged buy-outs. The companies only become attractive to buyers when they are in trouble and the value goes down, then they borrow the ENTIRE amount of the buy-out and the business is expected to pay it's operating bills as well as service the debt from the buy-out. It usually ends with the investors and lenders loosing their shirts while the bonuses are paid out to those that purchased the company.

[@rodneypratt4324]

It don't matter, Ken got his money. Now his family does... tragically. But he went out doing what he loved.How many can say that

[@pollumG]

🤝

[@TrggrWarning]

Probably more like FTX someone blowing other folks pension on the elites.

[@richarddgriffin]

Private equity gutting American companies and bond holders

[@Mechanic618]

08:30 - and it should be "gamut". You "run the gamut" to mean doing all the things. A "gambit" is more like a dare or risk. They mean "gamut".

[@robertmckeeverii6038]

Hoonigan died for me when the channel shifted and COVID hit. It lost the flavor of originality after being relocated and it just wasn’t the same. Burnouts in a building, pissing off the school, Kikawa - that era was Hoonigan. When Ken died, I tried to stick with the videos, but then they felt forced and it didn’t feel the same with trying to use Lia for battles with the Hoonicorn vs. the World. I don’t know - it felt like a “switch” went off and the world stopped caring about it for a while. I don’t see any many shirts, stickers, etc, since 2022.

[@extec101]

feelt the same Hoonigan where not hoonigan without KB. just as i lost interest of fast and furious films after Paul past the films dont feelt the same way knowing its not Paul its a computer generated character hollywood trying to cash in on Pauls fame.

[@bokyy747]

Oh man ,when kikawa would get a soda or beer from his rear pocket and drooled over spoons and other modded hondas withouth stopping. loool

[@criticalevent]

I thought them moving to a purpose built venue was going to be great for the channel, but turns out the shop was the heart of it and I can't say I watched more than a half dozen videos at the new place before I got bored with it.

[@matts6282]

​@@criticaleventand that can be said for the vloggers currently in that building as well.

[@Brian.mp4]

I miss all the stupid stuff they did. The donut circle jerk, man line, etc

[@aw6545]

Appreciate you Alex. Been wondering lmao. Thank you. Basically just goes to show, we as true car guys see right through and won't take the bullshit. Gives me hope for the future of the enthusiast world, man.

[@AlexMartini.]

Thanks for the comment! I wouldn't be able to do this if you didn't come watch and drop your thoughts. I hope it gets better, I think it will!

[@rayallaire4423]

@7:20 you named every aftermarket brand I’ve ever bought for both my Cars and Trucks 😂😂😂

[@davidrenteria2569]

Worked for Wheelpros for 8+ years.. got laid off when Vance showed up.. worked in corporate.. sad to see..

[@deyanfont]

So did I - Jan 8 2024 right after the holidays!! after about 20 years working for American Force.

[@madmanrunnin413]

It's mind bending how I understood the situation at hand because of the way you broke it down thanks

[@AlexMartini.]

Thanks for this!!

[@hdoglesby]

I had no idea about the change in Hoonigan's mission statement. Thanks for breaking this down for us. As much as I want to know, I don't always have the bandwidth to research things on my own. Appreciate your work Alex

[@Jasontyo]

Rotoforms were always cool. if this one mega conglomerate bought up all the old brands and failed to thrive with them maybe it’s time for some new brands, some spiritual successors.

[@jacobmay7594]

Well in all reality, the brand will die but the designs and rights will get sold to another company and youll get reproductions of the same old wheel just with a different brand or name.

[@kgreersf]

This is the longest short I've ever watched. But thank you. That cleared up a lot. Miss the og hoonigan days.

[@robert23497]

When Scotto, Zachary, Hert and Vin left hoonigan, I completely quit watching the channel. Haven't seen a single This vs. That since then

[@az_3kgt714]

This is what happens when you sell out to a conglomerate. They destroy everything they touch. Just like donut getting bought out.

[@ThaJay]

Just like Recaro / BBS

[@jacobmay7594]

Exactly, they all sold out. Why support them now, or in the future?

[@yoosrid]

what happens when fun and money turns into funny money, now the lawyers get all the money, and it isn't funny.

[@Ring0--]

Leaches on all of society.

[@harrisric128]

Great work on this video. The research and time it takes to put this together is lost on most people. Really, really great work!

[@hueylaroche9228]

Subscribed. Thanks for shedding some light on all the headlines going around.

[@gar24407]

Caveat, if lenders dont want to settle (hair cut) a chaper 11 can turn into a chapter 7.

[@AlexMartini.]

Very quickly too*

[@jforden78]

This feels likely without digging into the nitty-gritty. Typically the debt is transferred into equity, but I'm not sure the lenders can make back their money through ownership.

[@cs1375]

Before this video I had been thinking: what can I buy from Hoonigan to help them out. Now after knowing that they declared the founder someone other than Ken Block I have mixed feelings.

[@jmudman4116]

yeah don`t. Its sad to see the name go, but dont fund someone that seems to have no respect for what is important to us

[@abubakrhartley959]

Don't sell out

[@ettcha]

What exit plans exist that allow the founders to move on with a reward for their work while keeping what they created somewhat alive?

[@stephenpetersen354]

​@@ettcha saving and investing portions of the incredible revenue they make... Some creators make a wild amount of money even with their expenses. Do you really think they don't have the resources to setup retirement?

[@ettcha]

@@stephenpetersen354 that's cool and all, but why shouldn't they be allowed to do that and 'sell out' if they want to?

[@collincreeden2862]

​@stephenpetersen354 retirement and legacy is different. Many people will sell their company for a gain instead of just setting money aside for retirement and letting it die in the end. That's employees that have families and bills that need to get paid and instead of shutting it down, selling is a better way to hope that it still will go on without you

[@thebigmon]

Most people sellout when they see the sunset over the horizon. The founders of Hoonigan saw it and cashed out the second a good offer came. I don’t blame them.

[@AlexRoss1986]

I work at one of the wheel pros warehouses. We all have to find new jobs. Nobody has confidence that this will turn around. All of our buisness accounts are frozen for non-payment.

[@SupraSav]

As soon as you have corps involved be sure the company will be pieced off into c suite bonuses and eventual failure. Same recipe everywhere. The corpos involved have no repercussions so it keeps happening.

[@AlexMartini.]

There's a whole other discussion on the legality of PE firms and their lack of transparency and regulations for their growth BUT I am not aiming to get into political conversations like...ever.

[@Dgerous11]

You can blame it on big business wanting to make money from these channels but none of these channels had to sell to big business. They all could have kept doing what they were doing but instead they wanted money then they got annoyed when those business people tried putting them to work. The original Hoonigan and the original Donut crews never had to sell out, but they wanted money. That’s the side of this no one ever talks about.

[@Bristolcentaurus]

or when they did sell out they could have put terms into the contract that they retained "artistic control"

[@BradBeardow]

I love seeing my wheels (fifteen52) in this vid, and remembering how things were with Hoonigan and KB before the buyout. Man, talk about simpler (and better) times…

[@FCT8306onTwoWheels]

8:19 yes the fact that they changed it like that in 2023 was super weird to see when I heard of the merge

[@AlexMartini.]

And then changing the history was a wonky move.

[@dianapennepacker6854]

I am surprised their customer base didn't riot. That is so disrespectful. This happens a lot more than I care. It is hard to keep a special business alive when the soul who built it dies and leaves. Yet to just come right out, and shyte on the legacy while trying to expand off the name. I wonder how many people got rich off it. Was it worth it? To how many?

[@Treaxvour]

I love when Alex gets business nerdy.

[@robertely686]

Watching a 'car guy' suckling on the teet of private equity is a torrid sight

[@PANTYEATR1]

When i see these types of money numbers thrown around... I realize I'm living a worthless existence😔

[@Andris-ur8py]

Get a grip they are obviously all show no dough

[@sergeantspeed5941]

If it makes you feel better, this does not compare to the US government that adds roughly 80,000 dollars PER SECOND in debt.

[@swagstein9322]

The Most informative video about this situation on youtube 🔥

[@AlexMartini.]

Tried to do the real research before jumping into the topic!

[@swagstein9322]

@@AlexMartini. Hell yeah man

[@UpcycleShoesKai]

Ahhhh....the curse of the MBA

[@Nick_Tank]

When you got to Hert I instantly smiled because I’m so happy T-Pain went full send with Nappy Boy Music/Automotive to keep the vibe going without skipping a beat!!

[@Scrape.grape.]

This was a lot of usefull information and it explained so much more than I thought it would. Thank you alex, love what you do for the community

[@the510wagon]

Great video. I love your passion. I love that you you're calling a spade, a spade.

[@JimmyMakingitwork]

One thing the corporate world is good at is funneling money to the top execs and then going into bankruptcy unable to pay its bills. They usually blame the overhead brought on by employees or anyone other than themselves. Over and Over and Over.

[@ozman3830]

Clearlake Capital Group L.P. the real owners of wheel pros, hoonigan should pay the debtor's, the parent company is worth 70 billion. They clearly have the money. They just want to pay.

[@deahelkcunklaer2180]

As soon as private equity/venture capital buy a business it's over. The newly acquired company is then run by accountants allowing less input from the passionate people who actually built their dream in the beginning

[@GETLITUP69]

If it were ran by accounts you wouldn't have this problem. Wheelpros was bought by men who are brainless idiots.

[@RyanZavilenski]

343 did the same to Halo.

[@ytbeusr]

What works is authentic content from authentic people. Alex, you're one of these people - when you get big, for the love of god don't fall for the bait of these PE firms.

[@AlexMartini.]

I promise to always keep that in mind. I'm more scared about staying afloat right now than selling out, but I know you are all owed that transparency no matter what. I'd rather just build cars, help people mod their car at MartiniWorks, and save cats for the rest of my life lol

[@LuckyCharms777]

How authentic can he be when his entire channel and business revolves around making money off of us? 😂

[@therealmudafuka7200]

The car KZbin Slop situation is insane

[@SupraSav]

slop?

[@AlexMartini.]

[@Muhluri]

Pyro?

[@therealmudafuka7200]

@@Muhluri pyro

[@AllTheBoost]

I’m excited to see the 450k+ subs. Was here from the beginning. Thanks for keeping the brand going. In my eyes you were FI. Like James was Donnut. Now we need James to put it in gear.

[@DirtyD07]

Having worked for a company that went through a Chpt 11, it's easily possible for a company to come out even better than before, and continue to thrive. But the vast scale of this one will be VERY difficult.

[@cheeseblast]

Incredible research and video essay, thank you for your hard work.

[@SteveOnBlast]

This will be a bump in the road. Aftermarket parts will go up in price but in the end this opens the doors for small businesses again.

[@michael-michaelmotorcycle]

Deep down I think possibly when Ken passed away the OG’s were set up to move on and be successful via his wishes & the distribution/proceeds of his will. If you think about it, none of the OG’s left until the 1 year anniversary of Ken’s death. That is besides Hert, he had that tv show with Rutledge. That being said it can take a very long time for a will to be deciphered, hashed out in court and ultimately distributed, unless it is a well executed and perfectly written will. Which I believe Ken had based off of his lifestyle and his success before starting Hoonigan. If it was a well prepared will it can then take a year to distribute. If this is the case none of the OG’s want to talk about it because they want to move on and not publicly disclose that they were a benefactor to Ken’s fortune and forethought. And great for them. Just my 2 cents as a complete outsider and long time fan of Hoonigan.

[@theKashConnoisseur]

It would be really strange for a man to will his fortune to his employees when he has a family that needs their future taken care of. I don't think any of the crew got anything from the KB estate.

[@I_Am_Your_Problem]

You know nothing. But please... keep pushing unsupported narratives..

[@michael-michaelmotorcycle]

@@theKashConnoisseur He was wealthy beyond measure and grateful for everyone who worked for him. His family likely would be proud to have him leave his closest employees something since they were all so close with his family. I doubt it will ever come out though if that is the case. But it doesn’t matter. Like I said I was just stating my thoughts as an outsider and longtime follower of Ken and friends.

[@ksoblv]

It’s mind blowing of all the companies that you mentioned 🤯 This really upsets a true fan of all automotive SEMA companies that were named to boot.

[@vcdrny]

I know money talks. But when ever a KZbin channel sells themselves to one of those companies. That's literally putting the first nail in their coffin. Channels grow because people make a connection with the channel, with the people in the channel. That usually happens because they are doing something they love and people can see it and feel it. But the second a 3rd party enters and is just thinking about getting a return in their investment people notice and turns off. Donut is another example and as much as it hurts to admit, team theory is on it's way down too. Matt got out and sold it, so he'll be fine. But I'm sorry for the rest.

[@goodnaruk]

But like, this is every youtube channel. Is Morimoto lighting the best? or do we just believe it is the best quality product we can buy because youtubers installed them on their ride (sometimes its not even an endorsement, its just a free product for them to make more content) and because the price seems to command the expected quality? Are ACT clutches REALLY everyones preference? Or are they good clutches that innocuous marketing has boosted their perception of quality? DOES anyone actually think Valvetronic exhausts actually sound good? Or do we delude ourselves into agreeing with the marketing presented to us once we spend our money?

[@IDlikeanEvo]

Love the video Alex Keep up the amazing content , that one gave me chills !

[@MisterMemo]

As a car enthusiast since the 90's and arounf the industry since then too. I hate big brands that we grew up selling out to Big Corp companies just to make large money.

[@darrendent8288]

Its funny, when you follow market news and companies you will realize that bankruptcy isn't as bad as you think it would be.

[@AlexMartini.]

Bankruptcy is a "common" corporate strategy when things get dicey. It's not about overstating or understating it, but it does give some visibility as to when you can see brands are pulling out more aggressive stops to stay afloat. I'm less mad about bankruptcy, that's normal part of corporate business. I'm more mad about the tarnishing of a brand we loved

[@bdcochran01]

1. an excellent presentation on how a Chapter 11 works. 2. Throughout history, some companies have followed a path of acquiring smaller companies, one source suppliers, and trying to vertically integrate. The owners and stock holders are given an option of 1. not selling; 2. selling and taking cash; 3. selling and taking stock in the inquiring company; or 4. a combination of 2 and 3. So if an owner decided to roll the dice and let someone else run the small company, it was his decision, knowing that the acquiring company might fail and he would end up with nothing. 3. Misfeasance . . . . running a company badly is not a crime. Malfeasance . . . defrauding creditors/stock holders/IRS is a crime.

[@mammoth-puppy3246]

Been excited to see this vid alex. Thanks for the great content as always.

[@jays_rallyspeed3]

Yeah, I was so confused when I got a letter in the mail directly from wheel pros, LLC. With a declaration of bankruptcy inside. My heart started pumping, because at first I thought I was being summoned lol.. mind you the last letter I got was a tax form, from last year's winning with Throtl. Came here for the explanation. Thanks!

[@D-AVG]

Hooligan sold out and became corporate. Greed changes ppl especially when the guys who started it, gets old and starts worrying about their ego and bank accounts.

[@albertaguonjr6716]

And that Mr. Martinez, is why I left Hoonigan in the past. As soon as “Wheel Pros” changed their name to “Hoonigan” and tried to make it seem like they were the ones who “built” that name to what it was before the G.O.A.T. passed on, made me sick to my stomach to even look at the Hoonigan logo!!!💯 The ENTIRE OG staff was one that you can NEVER get back!! The very first video that made me fall head over heels with the brand was Hurt doing a makeshift build breakdown of twerk stallion at their Long Beach spot. Seeing the freedom, the “send it” vibe, and variety of builds from it being Zack’s first time turning a wrench on his Harley to having the Aussies smoke out Long Beach is what (in my opinion) defined what it meant to be a Hoonigan, “FUN”!!! Rest in peace to Mr. Block, Thee G.O.A.T., Thee Head Hoonigan, thank you for all you’ve done and continue to do beyond the grave for the ENTIRE car community!!!💯 And to you Mr. Martinez, a BIG thank you is in order as well! You sir have done alot for us as well whether you know it or not!!! I follow content creators who I feel give the help , advice, and entertainment. That’s Martini Works! Sorry this is so long but I was SOOOO PASSIONATE for Hoonigan because at one point, they were IT for me. It’ll never be the same, ever… R.I.P. OG Hoonigan, you’re gone but not forgotten…💯🙏🏽😞😔

[@DropAGearIndustries]

I have been hurt since Ken passed..so much happened within Hoonigan after he passed. I loved Hoonigan. I still support the original ideas. Ken, Vin, Scotto, Hert were all big inspirations for me. It's my goal to resurrect the OG days like Hoonigan through my channels.

[@ttali211]

Which I’m sure is realistically owned by blackrock or vanguard or both in the end. It’s funny when I was growing up in school we were taught about monopoly’s and how it was illegal. Now that’s all it is, it’s the same thing the trades. Bigger investment companies offering to buy all these mom/pop HVAC, Plumbing and Electrical companies. I graduated in 2003 so it wasn’t that long ago. lol

[@NotoriousSIG1855]

The company I work for is the administrator of Wheel Pros’ health insurance program for their employees. I’ll be interested to see how this bankruptcy impacts that side of the story.

[@Nick_Tank]

Cut benefits and cut wages. Even cut companies like how Work Wheels just went thru. WORK JPN and WORK US are different entities(in the response they posted). Seriously the only realistic thing that could happen. Fuck the people that built you up and cut half of their earnings to get back up….

[@wihamaki]

Curious how that works. If the company you work for goes belly-up, do people lose the ability to receive healthcare? Does that make people enslaved to their employer? Kind of gives off the same vibes as when they dig up a burial of an old king or something and they've killed horses and slaves to put in his grave as well.

[@NotoriousSIG1855]

@@wihamaki Good question. The company I work for does Self Funded health insurance. Most companies use a “fully insured” health insurance plan. The main reason why companies go with self funded health insurance for their employees is it’s cheaper than a fully insured health plan. I’m not sure this answers your question though.

[@Largecar2165]

you wont be the administrator anymore. the unions are doing this all over the US I have several friends where their unions have eliminated their insurance. Alot of these companies are buying other companies already in trouble thinking they will prop them up.

[@omnignarusist]

It's sad for all the reasons you stated. Good people that made the company work are devastated by corporate greed and poor decision making. Rip KB43

[@islammedheryamz8546]

Thank you for this awesome insight. Don't stop

[@blackrifle6736]

*Alex: Thank you for your continuing coverage and superb financial analysis of this M&A => BK behaviour. This alone puts you high above the average woo-woo CarTuber. Respect! and subscribed.*

[@jmudman4116]

At some point someone in charge of Hoonigan agreed for the brand to be bought. Or is that not how it works? Thats the saddest bit in this story to me...

[@AlexMartini.]

That would be Ken and the exec team at the time. They likely knew what would happen, just not to the extent that it did

[@LM2.S54]

@@AlexMartini. nah they knew and didnt care they cashed out

[@workhorsespeedandmachine486]

Ken sold DC too, that's what enabled his racing in the first place. All businesses grow to maturity and sell

[@DownEastSaw]

@@AlexMartini.so how are you not mad at Ken block? If Ken block sold the company, it’s Ken you’re mad at bro. Seriously, folks like you are the most ridiculous. You only learn the way the world works AFTER it negatively effects you.

[@votemikejones86]

First watch from you. Excellent video. Keep up the great work sir!

[@Carnerd101]

I appreciate the clear, concise information.

[@sortafast.industries]

I felt your passion in this one. Well done…

[@Gtv6Racer]

If you see Scotto selling avocadoes at the freeway on ramp, grab a few and help a brother out.

[@brian_scotto]

😂😂🥑🥑

[@mchristr]

If they're just short of ripe I'm your guy.

[@Sthemmm]

As a Chelsea FC fan, this was not the Clearlake capital crossover I was expecting. But as a Chelsea fan I can definitely believe 2 months

[@randolphsmith7552]

You speaking facts. Greed will only lead to the death of passion.

[@freshvintage]

Truly is frustrating to see the venture capital firm that started all this basically just running these companies into the dirt, and now they're trying to dump debt from previous bad decisions...

[@mattday9201]

Hoonigans original mission statement was the best. I laughed outloud when I read the new one a few years ago.

[@skldfjgnksdrfngisdfngiksdn]

I didn't realize that Hoonigan is a real company. I thought it was a brand of stunt car they made up for Forza Horizon 4.

[@Nick_Tank]

HOONIGAN always been a brand but it really took off when Ken Block sold DC shoe company to fund/skyrocket his auto career and made HOONIGAN car brand. P.s hence why Rob Dyrdek stopped wearing DC shoes cause KB sold it and was not being sponsored by em anymore. That’s why he made Dyrdek Machine Company to save his brand and assets

[@ObeseChess]

Yeah, I’ve only ever seen it as like, bumper stickers on the most clapped-out dogshit cars on the road or a shirt being worn by the guy driving the clapped-out dogshit car. I didn’t know it was anything other than like, a “brand,” like I didn’t know they actually made or did anything.

[@GETLITUP69]

You live under a rock.

[@Shuriath.]

I thought hoonigan was ken brocks crazy fast car brand name. This story is wild

[@JoshCx01]

For some reason, I feel like I didn’t learn much. I was very surface level, but pretty good video.

[@murmsuniversalrobotics3938]

Two months is unrealistic. We've seen multiple companies go under who make wheels, racing seats, and other components incorporated in cars made by the big three, and other auto manufacturers. We know Stellantis isn't doing well, this could be a canary in the coal mine.

[@dwood2010]

That new mission statement oozes with, "I'm a real car guy, so you must like me!" Some rich guy who only had friends because he had money asked his rich dad for some more so he could buy a cool company in an attempt to validate how "cool" he is.

[@johnwanamaker358]

Well said. Great video

[@nismospek]

I think the problem with the reorg is if the debtors even have the ability to sustain the debt. They essentially become owners of the new company but they have to be able to deal with the loss of the revenue until the company can actually start to pay everyone back.

[@supercellex4D]

Yeah my opinion of P.E. firms is in the negatives now.

[@siriusbreak2212]

I'd say this is a pretty fair and accurate assessment of what's going down with Hoonigan/Wheel Pros. I think throwing in the "tin foil hat conspiracy" was a bit hyperbolic, but also a fun self jab 🤣. Nah man, this is far from conspiracy, IMHO. This is what happens when a corporate entity buys a name expecting to own the concept without maintaining what was core to it. Hoonigan was a crew, and their name meant something. They've taken the name and used it as a header without putting any thought into what made the brand what it was. It really does suck to see it go down in real-time. Once we lost Ken, that was the beginning of the end of that era of Hoonigan. He was the glue and his departure from this world lead to everything there coming apart. They closed up shop in Cali and lost that spot where the average car head could stop through, show off their car, and create some smoke. Having that kept it as real as it gets. The current YT iteration of Hoonigan seems more like a crew without a home. They're everywhere, and yet nowhere. It's a flurry of This vs. That with an ad pushing wheels and the occasional random stop, somewhere. No focus on builds. No hearing real-talk from the crew (at least on the main channel). It's unfortunately become a hollowed out version of what it once was. It's tragic.

[@jaciel9943]

Thank you for making this video.

[@AlexMartini.]

Tried to be as accurate as I could!

[@BrokeCarBro]

i've had many people tell me starting a business is like having a kid. Can't sell it, gotta put it down yourself.

[@maegenyoungs2591]

This is what happened to SUPER SHOPS and other companies when BOYDS WHEELS fell through… this is what happens when corporations prey on genuine ways of are life’s.. they don’t get it, that’s why it never works..

[@danielanderson8502]

Omg I remember Super Shops! Getting stuff for my 1973 Nova back in 1991

[@elc7795]

What’s ridiculous is that people work their skin to the bones to build a brand and company just to sell it for a payday. There is no pride in owning a business anymore and the impact of what you’ve built.

[@2ride_along]

Bro…I think you have found a new niche within the niche…Keep doing Bro.

[@Fazillah]

Big Business is soulless and it takes the original authenticity and genuineness away from the original founding purpose and that’s why good things get ruined.

[@billbob4856]

Jack Welch style of business working again

[@chrispy725]

I bet people don't know what you're talking about. I think this is the biggest problem with American business.

[@billbob4856]

@@chrispy725 For those who are interested, check out The Man Who Broke Capitalism by David Gelles. It shows how Jack Welch took GE and gutted its employees, put outlandish focus on quarterly stock earnings above all else, and how many US corporations followed his lead. It also shows direct links from him, to his pupils, to a hostile takeover of Boeing from failing McDonnell Douglas, leading to their current issues.

[@blackrifle6736]

*Jack Welch is revered and his behaviours are emulated by PE a$$holes you wouldn't want in your living room or your life.*

[@spoileralert1745]

It worked until it didn’t.

[@Vardoulika]

Literally like 2 min before I got to where you were listing off the affected companies I just commented on a post of Throtl's if they were going to be affected by the Hoonigan bankruptcy case.

[@bikelife_bhill907]

Thanks for making this video I had no idea this was happening bit I'm a huge hoonigan fan!.. also I feel like this is similar to what's happening/ about to happen at donut.🤷🏾‍♂️

[@aaronhorn6849]

Hoonigan, death by bean counters! Miss your shenanigans Ken!

[@michael-james1970]

It's a good thing Ken Block kept Hoonigan Industries and Hoonigan Racing Division separate entities. The tru Hoonigan will live on in Hoonigan Racing Divisions which is now under the name of Block House Racing.

[@ndefiore]

Well done Alex.