CCM given glimmer of hope amid stock sell-off
CCM’s stock is set to go to auction, but former employees are being offered some hope.
CCM Motorcycles is being given a kind of lifeline by the auction house selling off all its assets, with some hoping that auctioneers’ approach will give the British brand time to find a new owner.
Bolton-based CCM Motorcycles entered administration back in June, following a familiar story within the motorcycling industry of getting a big cash injection from an equity investment firm, then struggling to keep debt under control as big dreams present big challenges.
It was a sad end to the company founded in 1971, but perhaps one that shouldn’t have been surprising, since CCM was seemingly unable to meet ever-tightening emissions standards.
Its business assets have been acquired by Gateway Auctions, who say they are keen to take an “outside-the-box” approach to helping pay off CCM’s debts. Whereas an asset liquidation entity might normally just take an ‘everything must go’ approach, selling off every little thing - from bike bits to office stationery - for whatever money it can get, Gateway Auctions are being a little more measured.
Gateway Auctions Director David Sunderland says he hopes a phased approach will “offer some hope for the brand and its employees.”
Step one will be to sell most - if not all - of the new and used motorcycles that were in CCM’s possession. This includes a number of heritage models. A selection of components will also be available, as well as memorabilia and various bits of branded merchandise.
After that, the plan is to utilise key members of staff to ensure that the “substantial” amounts of raw materials and components that CCM had are turned into actual motorcycles. Once they’re built, Gateway Auctions plans to sell those, too.
Doing things this way will take time, of course, and Sunderland suggested that the time aspect is part of the reasoning behind this approach. The longer the process carries on, the longer CCM has to try to find that unicorn person or corporation with the pockets and know-how to revive the brand.
“I was shocked to hear that such a well-respected UK motorcycle manufacturer had entered administration,” Sunderland said. “Long term, I’d like to see the brand continue, and we would be open to discussions with interested parties who may wish to take the brand forward.”
The thing to note here is that Gateway Auctions isn’t claiming to be taking on the running of CCM. What's happening here doesn’t sound like a full-on attempt to save the brand, as happened to Buell almost a decade ago.
Back in 2016, US motorcycle company Buell went under for what felt like the 250th time and its assets fell to a company called Liquid Assets Partners. Initially, they sought a buyer for the brand and all its bits. But after a few months, the story changed. It turned out that the owner and CEO of LAP really, really, really loves motorbikes. He ultimately decided to hold onto Buell and is now its CEO.
Arguably, things are working out. Buell is on the verge of releasing new models and has even returned to the UK market.
It’s unlikely that the story will repeat itself here with CCM and Gateway Auctions, but, never say never in the motorcycling world.
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Chris Cope is a fourth-generation journalist, originally from Texas. He has lived in the UK for roughly two decades and has been writing about motorcycles for most of that time. He has written for dozens of publications and websites in the UK, US, Canada, and Australia.
