Italian Court Declares Benelli Bankrupt

Italian motorcycle manufacturer Benelli is going through some financial problems as WP Suspension, who supplies suspension components, has failed to receive an outstanding payment of 1.2 lakh euros. Benelli has mentioned their commitment to complete the outstanding debt, but, apparently, WP Suspension has gone ahead and pressed charges against the Italian company. An Italian court in Pesaro has declared Benelli to be bankrupt due to non-payment of outstanding debts. Interestingly, Benelli claims that it has sufficient funds to clear the debts.

Benelli, which is owned by Qianjiang Group, after the declaration made by the court, had released a statement stating that the Italian company is strong and has sufficient funds to clear the debts. It also mentioned that the payments have already started. Subsequently, it has been learned that few completed motorcycles have been seized by a trustee as collateral for the outstanding payment. The Italian company have also appealed to the Court of Appeal of Ancona in Italy to have the decision by the Pesaro court reversed. 

In the international market Benelli has a customer reach which is expanding rapidly. In the Indian two-wheeler market, Benelli is possibly the fastest growing superbike brand, mainly due to lucrative pricing compared to its competition in the segment. Benelli had unveiled interesting products at the 2015 EICMA in Milan, out of which some motorcycles are likely to be introduced in India soon. As of now, it would only be a matter of time till we have confirmation on whether the Italian brand is actually bankrupt. Keep looking at this space for further updates.