The sign in the window tells the story. It’s not something that Harley-Davidson dealers have experienced since the 1980’s, but it’s starting to happen across the U.S. – foreclosure and going out of business sales.
Today it was announced that in Dubuque, Iowa, Wilwert’s Harley-Davidson is being foreclosed after almost 50 years in business. According KCRG news and the county Sheriff’s department the building is set for public auction on January 15, 2009. The sale notice states there is a judgment awarded to American Trust and Savings Bank in Dubuque for $1.6M.
Last week and shortly after running an ironic “End-of-The-World” sale the Santa Cruz Harley-Davidson dealer removed their equipment from the shop and closed. Owner Mike James cited poor motorcycle sales due to the struggling economy ending 11 years at this location and a 80 year run in the city. The dealers satellite shop in Watsonville, CA closed earlier this year. He was quoted in the Mercury News…
“We may be the first Harley dealer, but we won’t be the last.”
Things like this can really have a “domino effect” and in the end affects a lot of people beyond just the immediate employees. There is a local HOG Chapter without a sponsoring dealer and more important many people from the dealer as well as the owners have contributed greatly to local charities and fundraisers.
It’s a sobering reality and I hope the best for the employees and owners. Interestingly is that the only comment from corporate Harley-Davidson is a “no comment” on these things. Is that corporate lethargy and money talking? In this environment addressing customer concerns and making sure they don’t become further disappointed by parts and service issues should be important….
UPDATE: To clarify, Todd Wilwerts Golf Vehicles is NOT affiliated with the Harley dealer or is it closing.
Photo courtesy of Santa Cruz HD web site.
The Wilwert’s are wonderful people and to see them go through this is so sad. Individuals who have entered this store in the recent days to relish in this family’s misery make me sick and yet they are the same individuals who will be at the door for a free event sponsored by the Wilwert’s.
Try to remember how this will affect everyone, not just the Wilwert’s; the community, non-profit org. that benefit from events sponsored by Wilwert’s, the employees, other business that will be effected. The Gov can bail out the Insurance Companies and Big Corps that have exec’s living in mansions and receiving 7 figure bonuses annually, but what about the hard working family owned business…something to really think about.
I’ve heard of their financial troubles over a year ago. I had heard of investors being approached a while ago. You can’t grow bigger than your bills and keep up. It’s unfortunate, but I don’t think it is a surprise. And under the covers – I don’t think the flailing economy can be to blame. You must plan for these rainy days.
I think the economy has much to do with this particular situation. When buyers cannot finance due to tighter restrictions on credit; example- a year ago an individual with a low credit score of 640 could walk out the door with a bike plus any and all accessories, today this is not going to happen~hence no profit.
[…] I’m genuinely concerned. More so about the decay of prosperity in the local motorcycle shops, parts suppliers, and dealers. Be it routine service or customization, the local shops most often operate on their ability to make sure YOU are happy. They know if you leave satisfied, you will tell your friends about your experience with the shop. Word of mouth is an integral part of a shops reputation in the local area and carries a lot of weight in generating new business. “Giving” local shops rebuild, repair, or service work on your bike, while appreciated, is not going to keep a shop in business. The industry at large will need sales to rebound or the local motorcycle businesses will lay-off their skilled workers or worse – close down operations. […]