Hoonigan (Wheel Pros) files for bankruptcy

Hoonigan, the lifestyle and clothing brand founded by the late rally driver Ken Block, has filed for Chapter 11 bankruptcy protection. Now part of an existing aftermarket wheel company owned by private equity firm Clearlake Capital, Hoonigan is seeking to wipe out $1.2 billion in debt while aiming to raise up to $570 million in new capital.

Originally launched as Ken Block's personal brand, Hoonigan gained widespread recognition through its popular YouTube channel, "The Hoonigans," which boasts around 5.73 million subscribers. In a high-profile "merger," Hoonigan joined forces with aftermarket wheel company Wheel Pros, about 16 months before Block’s tragic passing in 2023. Following his death, many of the YouTube channel’s key figures departed over the next year and a half.

By October 2023, all Wheel Pros businesses had been rebranded under the Hoonigan banner, encompassing brands like TSW, American Racing, and Rotiform, among other notable aftermarket automotive suppliers. According to the court filing, the restructured company now faces a total debt load of $1.75 billion, with the bankruptcy expected to discharge the $1.2 billion portion.

Despite the bankruptcy, this doesn’t necessarily signal the end for Hoonigan in its current form. The company described the filing as a "strategic transaction" intended to strengthen its financial foundation and support future growth. However, even if the restructured company emerges financially stable, the Hoonigan brand that fans cherished as recently as 2020 appears to have undergone significant transformation.