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Posts Tagged ‘Long May You Run’

Neil Young sang the song “Long May You Run“.

“We’ve been through
Some things together”

Last August, specifically on the 8th I was returning home from a week long ride in the Canadian Rockies and spent a night in Kennewick, WA (Tri-Cities) where I stopped at the local Harley-Davidson dealer.  Nice place and the dealership is owned by Shumate Motorsports or more importantly the owners are John Michial Shumate and his wife, Jennifer Shumate.

Interestingly on this day they were having a mother of all sales.  Strangely not on motorcycles, but on EVERYTHING else.  It looked like a going out of business sale and when I ask the sales clerk what it was all about she responded with something about needing to make room for all the new products so they were unloading inventory.  Sounded fishy.

Turns out that my inner voice was correct.  Just a couple of weeks later (September 2009) the owners filed for bankruptcy.  In court documents the Tri-City couple stated they’d racked up more than $10 million of debt for Shumate Tri-City LLC, Shumate Inc. and Shumate Spokane LLC.  Their first motorcycle shop was in Kennewick.  Then in 2004 the couple took over Spokane’s sole Harley-Davidson dealership, at 6815 E. Trent Ave. They also owned stores in Walla Walla and Lewiston, ID.

Sure these dealers are just locations on a map, but they also represent what life is about, experiences as you travel across the country making new friends and I’ve been to all of them over the years traveling around the pacific northwest.

According to reports, the Shumate’s filed an adversary proceeding in October 2009, accusing the motor company and affiliate companies of violating the Washington State Consumer Protection Act and of breaching a good-faith obligation.  Specifically the Shumates stated that Harley-Davidson disrupted their ability to carry on normal dealership operations by obtaining a temporary restraining order in August prohibiting them from selling motorcycles, parts, accessories and clothing that constitute collateral to which Harley-Davidson Credit Corp. claims it’s entitled. They contend Harley-Davidson then used that temporary inability of the Shumate dealerships to operate normally as the basis for the issuance of letters announcing the manufacturer’s plans to terminate its dealer contracts and franchises with them.  This maneuvering occurred when at the same time the motor company approved a new posh and competing dealership in upscale Coeur d’Alene, ID.

I don’t have visibility into all the internal workings or choices made at Shumate Motorsports, but one can’t help but have empathy.  If you believe Harley-Davidson advertising we’re supposed to have one part “stick-it-to-the-man” and one part sympathy for H-D, after all, they are losing millions bringing us these premium-priced motorcycles and the lifestyle.  Ain’t that America, where the public is beholden to corporations who pay little tax yet demand sympathy, as their lobbyists keep the government’s hands off of them and they wine and dine luxuriously in private while walking around in public with their pockets turned out?

At any rate, the latest update is a bankruptcy judge in Spokane will next week set a date for selling Spokane’s only Harley-Davidson dealership, plus the three other stores.  The Shumate Motorsport attorney (Barry W. Davidson of Spokane – see the irony?!) stated that it was Shumate’s intent to close his Spokane and Idaho operations but they were going to try and keep his Tri-City and Walla Walla stores open.  It’s not clear they will be successful in that effort.

Long may you run…

Photo courtesy of Boston.com

Previous posts on H-D closures HERE, HERE and HERE

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