Hoonigan Has Filed For Bankruptcy

The lifestyle brand founded by Ken Block has filed for Chapter 11 bankruptcy and is now looking to restructure and rebuild

Mike Bartholomew

10 Sep 2024

Ken Block in his 2021 Subaru WRX STI rally car

Hoonigan, a brand synonymous with its founder, the late Ken Block, has announced it’s filed for Chapter 11 bankruptcy as it looks to offload around $1.2 billion (approximately £917 million) in debt.

The brand was founded by Block and content producer Brian Scotto in 2010 as both a clothing brand and an outlet for Block’s Gymkhana video series, as well as various other automotive content. Since then, its YouTube channel has racked up over 5.7 million subscribers. It also oversaw the builds of plenty of Block’s iconic race, rally and gymkhana vehicles.

In 2021, it was merged with aftermarket wheel supplier Wheel Pros, at which time much of the company’s senior team – including Block and Scotto – was announced to be remaining. In January 2023, Block died in a snowmobiling accident, and since then, much of the brand’s high-profile presenting team has departed. In September 2023, Wheel Pros and Hoonigan merged and everything was rebranded under the Hoonigan name, the last major development before today’s announcement.

The company says it’s embarked on an “in-court financial restructuring process,” which it hopes will eliminate around $1.2 billion in debt and secure around $570 million (around £435 million) in new capital.

Hoonigan CEO Vance Johnston said: “Today’s announcement marks an important step forward for Hoonigan that will enable us to advance our industry-leading position in the growing automotive aftermarket sector… With the strong support of our financial partners, we remain laser-focused on providing cutting-edge products and best-in-class service to our partners throughout this process.”

Hoonigan’s press release only mentions the bankruptcy in the context of the company’s aftermarket supply activities. It does not mention its YouTube channel, which uploaded a video as recently as a week ago, or its other content channels – whether its media output is affected remains to be seen. However, the company says it expects operations to continue as normal throughout the process.

The first full sentence spoken by an infant Mike was a review of the ride quality of a Volvo 850. It was “Daddy’s car goes bumpy-bump on a bumpy road,” so would probably need proofreading a bit, but it was a start.