Welp, after we published the story that Energica could be possibly closing its doors, we got the official word. It's over for the electric motorcycle company.
Pour one out for one of the OGs in the electric motorcycle sector.
In a press release given to RideApart early this morning, Energica stated that while its board of directors had attempted to find new cash infusions and investments, as well as ways to monetize the company better, the only route forward would be through declaring bankruptcy. More than that, to pay off the company's creditors and debt obligations, the board decided to fully liquidate all of its assets rather than going the Cake route of declaring bankruptcy and then finding a new owner.
"Energica Motor Company SpA, a manufacturer of high-performance electric motorcycles 75% controlled by the American fund Ideanomics Inc., announces that its Board of Directors meeting held on 14 October 2024 at 3:00 p.m. resolved to enter into a bankruptcy judicial liquidation pursuant to art. 121 et seq. of the insolvency law," states the release.
But the company statement adds the following, which really twists the knife "Despite the efforts from the management in actively and extensively pursuing a search for new investors – always with the aim of preserving going concern in the best interest of creditors - it has become clear in the last few hours that these alternative options are no more viable, thus leaving the company with no other choice than resolving for the opening of a bankruptcy judicial liquidation, thus allowing repayment of creditors to the extent possible from the proceeds of liquidation and according to pari passu rule and priority rankings."
The release goes on to go through a highlight reel of all of Energica's history, including its tech innovations, its success in terms of sales and delivering motorcycles that its customers genuinely loved, its work with MotoGP and FIM, and the company's devotion toward the EV sector. Honestly, it reads as if whoever wrote the release truly loved the company and that they're upset over its closing, and not just because they're losing their jobs.
And that's because the statement was made by the founding members of the company, not private equity firm Ideanomics which had purchased a controlling stake in 2022.
If you've been reading RideApart's coverage over the last few months, we've covered a handful of other private equity fails, including the downfall of Hoonigan. But it's become almost cliche at this point when private equity comes in, throws around a bunch of cash, takes control of a relatively healthy company, and within a year or three, utterly demolishes it in search for fast cash, which absolutely isn't a thing.
We've seen it time and time again.
And while the founders' statement is generally positive about Ideonomics' purchase of the company, stating that its cash flow helped to make it more "free and flexible in managing its financing and flexible in its growth," the resulting "downturn" in the EV market that impacted the PE company's other investments, as well as the need to find more outside investment hampered the company.
The final sentence in the release reads, "This press release is attributed to the founding members of Energica. It is noted that Ideanomics has chosen not to comment."
Though I've already opined that while I love electric motorcycles in their function, form, and quietness for all manner of uses, I think Energica—as well as every other EV motorcycle manufacturer—has an uphill battle. These bikes cost a lot compared to their ICE siblings, there are still tech and charging problems galore, and we're still very early days in terms of battery development. As such, EV bikes don't make a ton of sense for the average motorcyclist.
At least not yet.
It's sad to see a company as successful as Energica in terms of technology and the overall product close its doors, but I'm glad to read in their statement that their 45 employees in Italy will be covered both in terms of financial assistance and insurance as they find new jobs throughout the region.
Hopefully, another manufacturer can pick up some of the pieces. Maybe it could continue the company's legacy.
