GM, Rick Story and Owner, Dave Tuomisto
It’s starting to look a lot like a “job-less recovery”… and the R-word continues to take a toll as bankruptcy filings nationally surged past the 1 million mark during the first nine months of 2009. Many states have similar statistics, but in Utah the U.S. Bankruptcy Court received 10,706 bankruptcy petitions in the first nine months of this year — a 62% increase from the same time last year.
And speaking of Utah, the owner of Timpanogos Harley-Davidson (Dave Tuomisto) filed for Chapter 11 bankruptcy protection last month to help stall an acrimonious legal battle over millions of dollars in alleged unpaid debts to several lenders. I previously blogged on the July 2008 opening of the mega-dealership HERE and it’s unique history after a $16 million renovation complete with green building awards.
The 6-acre complex and building was resort-like and often written about in a very positive profile that focused on Harley-Davidson’s growth strategy, branding efforts, and future opportunities. Overall, it was a great story and a source of pride as a memorial to the Geneva Steel power plant. For the city it was a way to talk up the merits of building green and reusing historical icons. It was like a mini-museum and it’s very unfortunate to witness its rapid fall – again.
As the economy continued to falter, the overextended Mr. Tuomisto structured an agreement with Nu Skin founder Blake Roney (Tupelo Investments LLC) to transfer the dealership to them after getting bailout assistance to keep the dealership’s assets from being seized and shut down by Harley-Davidson Credit Corp. Tupelo Investments LLC owns the 60,000 square-foot building and the motorcycle-themed restaurant called Marley’s. In bankruptcy court filings the list of creditors include: Harley Davidson Credit, which is owed $4.3 million; Monarch Recreation Sales is owed $760,922; Scrub Oaks is owed $400,000; the Utah State Tax Commission is owed $151,363; and millions more owed to hundreds of other businesses and individuals.
But wait, there’s more… quick to smell a deal, Joe Timmons (Owner of H-D Salt Lake, South Salt Lake) is trying to buy the building which housed Timpanogos H-D. Likely for pennies on the dollar.
Photo courtesy of H-D.
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Recession on two wheels has hit the Inland Northwest as well with the Chapter 11 status of the three locations of Shumate Harley Davidson. One in Kennewick (the owner hub) another here in Spokane and the satellite location in Lewiston ID. Overextended debt proves once again to be a less than sound business model. It is unclear when and even if the dealerships in their current form will re-emerge. Reopening and/or relocation seem months if not a year or more away.
I am left to wonder what impact dealer debt and subsequent failure/foreclosure will affect HD corporately. Do these stores become corporate franchise’s?
Fortunately for those of us in Spokane the one year old Lone Wolf Harley Davidson of Coeur d’Alene is flush and flourishing. This one year old dealer’s HOG group has well over 500 members. Good customer service and passion create a healthy Harley community. The only downside is the 40 minute drive making the drop in and hang atmosphere a challenge from Spokane. Our only other dealer options would be Wenatchee 160 miles west or Yakima at 200 miles.
I am sad to hear of Timpanogus fate for I had seen the website and read what sounds like a great story and was planning on including an intentional stop and hang as a part of some future odyssey.
Is HD corp. headed the way of Indian only on a different scale. Vintage bikes with a series of re-sergeant efforts? I hope not.
Visited Shumate dealership in Kennewick this summer and thought it was a fine dealership. Also stopped at the shop in Lewiston.
Visited Timpanogo Harley earlier in the year and was impressed enough be organizing another trip down there from Pocatello before the snow flies. Loved the restored classics they had around the shop and the burgers were to die for. I’m not impressed with many Utah dealers but I like this operation.
Here in Pocatello we are worried about our dealership, Eagle Rock. There have been layoffs and to say business has been slow would be charitable. It is a satellite of Grand Teton Harley in Idaho Falls which seems to be doing better. Eagle Rock has a far better HOG group and none of us want to have to ride the fifty miles to Idaho Falls to get work done. The Idaho Falls, Pocatello, Twin Falls, and Jackson, WY stores are all owned by the Chester family who also own a dealership or two in AZ.
I’ve heard really good things about the Couer d’Alene Dealership but haven’t yet visited. I pland to next summer.
BTW, I’m putting a link to your great blog on my blog, “HardRider,” at http://hardrider.wordpress.com. Also, I invite you to check out my Motorcycle Poetry at “Songs of the Open Road,” http://roadpoetry.wordpress.com.
Ride Hard, Live Free
Bill “uglicoyote” Davis
Pocatello, ID
[...] ride. Today I learned that Timpanogos has filed for Chapter 11 bankruptcy protection. See this post at Northwest Harley Blog. Bad news and a sign of the times. Here in Pocatello, many of us are wondering if our own [...]