Hoonigan's downfall didn't happen when Ken Block tragically passed away.
It certainly wasn't good for the brand, but Block and Brian Scotto had built an empire, one that could've been inherited by Block's wife, children, and the merry band of misfits that Ken and Brian had pulled into their gravitational field. They could've kept going, and it likely would've worked.
But Hoonigan's downfall, and now bankruptcy announcement, was all but likely when the announcement of its new CEO went viral across the internet. And not for good reasons.
See, a few years back, Clearlake Capital—a private equity firm—had purchased a controlling stake in Wheel Pros, and aftermarket automotive parts company. And, in a bid to further secure its foothold in the space, it bought a controlling interest in Hoonigan. Again, that could've been great, as it could've propelled the brand to new heights. But that's not what happened. Instead, the merger went viral when it released the picture of the new company's CEO, now fully branded as Hoonigan, Vance Johnston.
The internet ate him alive.
No hating on Mr. Johnston, but the man looks as if he believes mayonnaise is too spicy. His picture gave "I'd like to speak to the manager" vibes or that he'd be the first one to report you to the HOA for installing a new set of headers and exhaust on your Camaro. Johnston's picture is the prototypical 1980s Wall Street bad guy who's taking over your favorite place just to turn it into a parking lot.
And so on and so on and so on.
A True Hoonigan 🤣
byu/Sixspeed94 inhoonigan
From the outside looking in, he was/is the antithesis of what Hoonigan was built on—a punk rock, skater-adjacent, underground movement of enthusiasts that just wanted to kill all tires, jump shit, and generally act like the hoodlums we all actually are. At least, that's how the announcement and his picture read to the internet at large. I was still on Twitter at the time of this and, woof, people were knives out. But the main takeaway from that roasting was that almost everyone called what was going to happen with Johnston and Private Equity involved.
So it's not really all that surprising that only a few years later, after the departure of Hoonigan's main cast of characters, i.e. Brian, Zach, Vinnie, Hert, Ron, and a few others, as well as the cheapening of the brand, the loss of Ken, and the general loss of the brand in the enthusiast zeitgeist due to said cheapening and cast lost, the company is now going bankrupt.
According to Hoonigan's press release, "The Company has entered into a Restructuring Support Agreement ("RSA") with a majority of its debtholders through which it expects to eliminate approximately $1.2 billion of the Company’s debt and secure up to approximately $570 million of new capital, substantially improving the Company’s balance sheet and financial position."
This adds to the trend that occurs so frequently now that it's almost cliche.
Private equity buys a great brand that's doing just fine financially. Structures the purchase by taking on a load of debt due to them overvaluing the property. Make hurried changes that impacts creatives who built the brand and causes them to flee. Everything goes to hell after creatives flee. Wonder what the hell just happened without ever looking in the mirror. Files for bankruptcy or goes full-on fire sale, i.e. CNET, Donut, etc, etc, etc.
Vance Johnston, everyone's favorite suit, added " Today’s announcement marks an important step forward for Hoonigan that will enable us to advance our industry leading position in the growing automotive aftermarket sector. With a significantly strengthened balance sheet and new capital, this transaction will position us to invest in innovation and further drive financial performance. With the strong support of our financial partners, we remain laser-focused on providing cutting-edge products and best-in-class service to our partners throughout this process.
Jesus, he even talks like a freakin' suit. Johnston once narc'd on you to your mom for going 5mph over the speed limit. He also camps in the left lane so people don't break the law, probably.
As for what will happen with Hoonigan going forward, that's anyone's guess. I'd hate to see a world without the brand, but at the same time, I haven't watched a video or grabbed any merch from them in years. They used to do cool shit, and it resonated with a lot of people. They built an empire. But just like all other empires, they too have fallen.
Guess we have to lift after all.
