The most popular auto racing series in the U.S. for decades has been NASCAR, though Formula 1 is fast approaching the stock car racing series in popularity.
Despite its popularity, several NASCAR racing teams have not had the success one might expect from the popular racing circuit. Since 2016, 11 NASCAR racing teams have closed, merged or filed for bankruptcy, the New York Times reported.
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For example, the Covid pandemic was blamed for Leavine Family Racing closing after the 2020 NASCAR Cup season. In 2018 NASCAR racing team BK Racing, founded by Ron Devine filed for Chapter 11 bankruptcy with over $44 million in debts. Also in 2018, Furniture Row Racing shut down.
Before 2016, controversy led to the demise of Michael Waltrip Racing in 2015 after an intentional spinout incident in September 2013 at Richmond International Raceway led to suspensions, fines, dissolution of sponsorships and the closure of Waltrip Racing, Autoweek reported.
Two years earlier, Red Bull Racing shocked the NASCAR circuit by closing down its team in 2011.
Related: Distressed grocery brand files for Chapter 11 bankruptcy
Contributing to NASCAR problems, troubled restaurant chain Hooters missed its sponsorship payments to Hendricks Motorsports, which includes driver Chase Elliott, forcing the racing team to drop its association with the restaurant chain in 2024.
At the end of the 2024 season, NASCAR team owners, Tony Stewart and Gene Haas of Stewart-Haas Racing will close down their operations and sell their assets to the highest bidder, Hagerty Media reported.
More bankruptcy:
- Tinker Toy, Tonka toymaker files Chapter 11 bankruptcy
- Another coffee and cafe company files Chapter 11 bankruptcy
- Distressed home improvement retailer plans Chapter 11 bankruptcy
JD Motorsports struggles in Chapter 11 bankruptcy
Longtime NASCAR Xfinity Series racing team JD Motorsports reportedly laid off most of its employees on July 15, three months after filing for bankruptcy protection, sources told auto racing website TobyChristie.com.
JD Motorsports on April 8 filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court for the District of South Carolina in Greenville. The debtor listed over $422,000 in unsecured claims on its petition.
The layoffs reportedly came two days after JD Motorsports withdrew its No. 6 Chevrolet Camaro driven by Garrett Smithley from the NASCAR Xfinity Series race at Pocono Raceway at Long Pond, Pa., on July 13.
The decision to withdraw Smithley's car was not relayed to team members until the official withdrawal was reflected on the official NASCAR entry list, TobyChristie reported. The No. 6 car was reportedly prepared for racing at Pocono and loaded into the team hauler, but never left the team shop in Gaffney, S.C.
JD Motorsports, however, did race its No. 4 Chevrolet driven by Thomas Annunziata in the Xfinity Series race at Pocono on July 13, finishing 28th in the race. Despite the layoffs, JD Motorsports reportedly plans to race a car in the NASCAR Xfinity Series Pennzoil 250 event at Indianapolis Motor Speedway on July 20.
JD Motorsports, a NASCAR Xfinity Series team owned by Johnny Davis, was established in 1983 with drivers Joe Henry Thurman and Davis earning one Top 5 and seven Top 10 finishes from 1983-85. Since its launch, the team has a earned a total of four Top 5 and 29 Top 10 finishes, according to its website.
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