This week Holley Performance Products filed for Chapter 11 bankruptcy. Within hours, the news raced through the industry as if it were powered by one of Holley’s infamous double pumpers at wide open throttle. In fact, we at FordMuscle first heard about the news through a rather backhanded press-release from Holley’s competitor, Barry Grant Carburetors. The press release, oddly titled “Bridge Over Troubled Waters”, appeared to celebrate the situation, by proclaiming that Barry Grant would ‘meet the demand for four barrel carburetors.’
Here is the release from Barry Grant:
Bridge Over Troubled Waters
Following last week’s production launch of the Demon 98 hot rod carburetor, Barry Grant is confident that the new revolutionary Inline carburetor, the Bad Man, will follow soon.
Further, following yesterday’s news of the filing of papers by Holley Performance Products in the US Bankruptcy Court in Wilmington, DE, we can assure our customers and distributors that we are fully prepared to meet the demands of the conventional four-barrel carburetor market. There will be an uninterrupted supply of carburetors.
Holley has been a worthy adversary, with a rich history, that has fallen on hard times for a variety of reasons.
Has been a worthy adversary?!! It seems appropriate to paraphrase Mark Twain, who once said, “the rumors of my death have been greatly exaggerated.” The fact is, Holley is here to stay, as are all the Holley carburetors powering every NASCAR engine for every team, and everything else Holley, Weiand, Earls, Hooker, NOS and Flowtech that powers millions of muscle cars around the globe. Holley is not disappearing any time soon.
The company, founded in 1903 by George and Earl Holley is a cornerstone of the American automotive industry and motorsports. Holley, like many American companies across all industries, has been challenged in recent years with rising manufacturing costs in this country, as well as other economic factors. Yet, the company continues to grow through new products, building upon solid brands, and continuing to provide the highest level of support to enthusiasts and racers.
Unlike Chapter 7 bankruptcy, Chapter 11 does not mean the company is dissolving. In fact, it means entirely the opposite. Chapter 11 of the bankruptcy laws simply means that the value of the company as a whole is much greater than if it were broken up into its smallest assets and sold off to pay creditors. Companies which have a significant amount of debt often use Chapter 11 to obtain a loan allowing them to pay off current creditors and restructure the ownership and remaining debt to a new set of owners. In car talk, all this simply means is the ol’ Holley is getting a financial rebuild.
Holley has reassured everyone, including us, that it is business as usual. Holley is continuing to move forward with all of its plans, including continued delivery of its world famous carburetors - much to the dismay of at least one of its competitors.
Be sure to also read the post on the FordMuscle Forums by Jay McFarland, Holley’s Sr. Product Manager.
I am an employee for Holley. I work in Weiand, I machine all components for Holley/Weiand Superchargers. I am not an official spokesperson, I cant tell you all the in’s and out’s but I can tell you that Lunati was sold to private investors the beginning of the year. All Lunati employees remained with the company. Holley became ISO certified and has a fast growing OEM department supplying parts some major big time companies. The restucturing of this debt will make Holley better and insure Mr. Barry Grant that we will be his competitor for another 100 years. The Holley family is a proud bunch and I am truly blessed to work with such great people.
By R.A.Beaty. March 18th, 2008 at 1:30 pm“Holley has been a worthy adversary, with a rich history, that has fallen on hard times for a variety of reasons.” Some of which may have been caused by BG practicaly photo copying Holleys blueprints….
By Jerry. February 24th, 2008 at 9:25 amAnytime a bank forgives money owed, the interest rates and “fees” we pay go up.
By Jerry. February 24th, 2008 at 9:23 amThe bankruptcy laws in this county NEED to be changed.
I wonder how hard it will be to peal that Holley sticker off…Honey, can I use your hair dryer for a minute?
Anybody notice that Lunati isnt under the “Holley Brands” banner on Holley.com any more?
By Steve Moberley. February 19th, 2008 at 7:34 amChapter 11 is a slick way for companies to avoid paying small creditors at all. I wouldn’t be holding up Holley as a beacon of American inventiveness for this sad chapter. They took on more debt than they could afford to pay back. Dumb move. The big creditors will likely work out new terms. The little guys will likely never see a dime of what they are owed.
Been there, done that, had a judge tell me my T-shirt would not be forthcoming.
By Phil. February 18th, 2008 at 12:16 pm[…] Illuminating the Holley Rebuild iGoMuscleCars.com wrote an interesting post today onHere’s a quick excerptThe fact is, Holley is here to stay, as are all the Holley carburetors powering every NASCAR engine for every team, and everything else Holley, Weiand, Earls, Hooker, NOS and Flowtech that powers millions of muscle cars around the globe … […]
By Muscle Cars - Muscle Car information on FlashyCars.net » Illuminating the Holley Rebuild. February 14th, 2008 at 11:54 amHolley is a very important brand and product line to our industry and it’s equally important that this product line is appropriately restructured and continues the rich tradition and value in delivering their products to the performance aftermarket.
By Industry supporter. February 14th, 2008 at 8:34 am