Rennie Scaysbrook | October 15, 2024
Italian electric motorcycle company Energica has declared bankruptcy following a Board of Directors meeting held on October 14, 2024.
Energica, a powerful player in the electric motorcycle space and the original MotoE control motorcycle within the MotoGP paddock, was known to be in difficulties for several months, reducing staff levels from 150 to around 45, having started life within the famed Motor Valley that in northern Italy that includes Ferrari, Lamborghini, Maserati, and Ducati.
A press release from Energica stated, “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.
Energica will shut its doors after a decade of production.
“Officially founded in 2014 as Energica Motor Company Srl, and with a design phase that began in 2009, the company has established itself over 15 years as a benchmark for high-performance electric mobility, demonstrating resilience and innovation.
“Thanks to its technical know-how, considered the company’s main asset, Energica has introduced four technological platforms to the market and has served as the Unique Manufacturer of the fourth MotoGP electric category, the FIM Enel MotoE World Cup, for four consecutive years. Despite the challenges posed by the global pandemic, Energica achieved record sales volumes and revenues with the launch of the Experia model.
“Energica’s entrepreneurial vision has been supported and financed from the outset by its founding partners, who in 2016 decided to list the company in the AIM Italia sector (now Euronext Growth Milan), dedicated to innovative Italian SMEs, to secure the necessary capital for growth that they could no longer sustain alone. The company was listed with a capitalization of €37.3 million.
“In 2021, with the investment from Ideanomics Inc., Energica launched the Experia model, achieving record sales volumes and revenues of €13 million, a 200% increase compared to 2021.
“In March 2022, Ideanomics successfully completed a voluntary takeover bid, which allowed the shareholders to transform the company into a private entity, making it more free and flexible in managing financing and agile in its growth.
“However, the subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and consequently, compromised Energica’s investment capabilities.
Energica’s Stefano Mesa (137) was a leading light in the MotoAmerica Super Hooligans championship.
The company has also faced challenges from the downturn in the automotive market and supply chain, being particularly affected as a small and medium-sized enterprise. The commitment to its objectives and mission has remained steadfast, as demonstrated by initiatives like the solidarity contract aimed at safeguarding workers and overcoming the difficult period.
“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.
“Throughout its history, the company has consistently invested in its workforce, training staff in the most innovative skills in the electric mobility sector, without making any contract terminations in its 15 years of activity. The founding members have prioritized young talent, collaborating closely with schools and universities across the country and beyond. The average age of Energica employees has always ranged from 28 to 35 years.
“Management has guaranteed salaries even during the most challenging periods, where necessary also thanks to the support of the Italian minority shareholders, always with a view to preserving business continuity and in the best interest of creditors and all stakeholders. In the last two years, some employees have voluntarily left the company; these professionals have since been absorbed by major players in the Motor Valley.”
Energica had been one of the three major players in the electric vehicle space within the U.S. with rivals Zero Motorcycles and Harley-Davidson/Livewire. They had enjoyed success in recent years on the track as well, racing the MotoAmerica Super Hooligan National Championship with Stefano Mesa and achieving the first podium in a national road race against traditional gas-powered motorcycles at Circuit of The Americas in 2023.
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