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.