It's hard to know what direction the powersports market is going. Just a year ago, Polaris laid off a massive chunk of its workforce, and it looked like more layoffs were likely this year, but then BRP recorded a ridiculous 150% increase in year-over-year revenue in Q3 this year.
Now, to muddy the waters even further, a well-established Florida-based powersports dealer has filed for Chapter 11 Bankruptcy.
The company is Cycle Sport Center, Inc., which is an Orlando-based powersports dealership that recently filed for Chapter 11 bankruptcy in the hopes of restructuring its debts while continuing to operate normally. Filing for Chapter 11 bankruptcy, as the US e-bike company Rad Power Bikes did recently, is a voluntary move, and records show that the petition was submitted on December 29 in the U.S. Bankruptcy Court for the Middle District of Florida.
Cycle Sport Center sells a variety of powersports brands, including Slingshot, Kawasaki, Polaris, KTM, and Yamaha. As for the types of vehicles and services specifically, well, it's about everything you can think of: motorcycles, personal watercraft, scooters, and utility vehicles. Accessories, apparel, and repair services. Cycle Sport Center's customers are spread throughout Kissimmee, Lake Mary, Windermere, Oviedo, and Longwood.
After attorney Justin M Luna filed a voluntary Chapter 11 filing under Subchapter V. for Cycle Sport Center, Inc., the court asked the dealer to submit all due documents. Included in the necessary documents are schedules and statements, a disclosure of compensation, and a statement of financial affairs. The Chapter 11 Plan is due by March 30, 2026.
Cycle Sport Center will continue to operate as per usual while working toward filing the required documents and submitting a Chapter 11 plan by the mandated deadlines. Hopefully, the brand will be able to restructure and/or find a buyer to dig it out of a financial hole before March 26th.
