February 11, 2013
By: John Clark
The merchandising division of Orange County Choppers, the motorcycle company made famous on the reality television series "American Choppers," is filing Chapter 7 bankruptcy, according to a report from Bloomberg News.
Sources note that the merchandising division, Hudson Valley Merchandising, is separate from the parent company, Orange County Choppers Holdings, which is not included in the bankruptcy filing.
The group filed for bankruptcy in Poughkeepsie, New York, and told the bankruptcy court that it had $1.4 million in unpaid debts. The merchandising division has reportedly had several judgments leveled against it in recent months.
The company reportedly has a few assets, but they are all in the form of accounts that have not been paid, and are thus not a reliable indication of its current ability to repay debts, sources say.
Sources note the court has already appointed a trustee, who will likely work in tandem with the company’s Chapter 7 bankruptcy attorney to begin liquidating some of its assets. The reality show featuring the business just ended a decade-long run on TLC, where it moved from the Discovery Channel in December 2007.
The show launched in March 2003 and featured Paul Teutul Sr., the owner of the motorcycle-building company, and his son, who became famous for both their motorcycle knowledge and their entertaining banter.
Despite the success of the show, which lasted much longer than most reality television programs, sources note that Orange County Choppers has not been immune from financial stress.
In 2010, for example, GE Commercial Finance started foreclosure proceedings against the company’s headquarters, but eventually stopped the case and instead took the deed to the unique glass-and-steel building from the Teutuls.
This may allow the company to continue to occupy the building, but it will eventually have to settle its debt with the disgruntled creditor, unless it is discharged in bankruptcy court.
In addition to the financial troubles, Orange County Choppers has also seen its share of workplace strife. Sources note that Teutul’s son, Paul Jr., was fired in 2008 after reportedly engaging in frequent disagreements with his father.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.