Wheel Pros: Clearlake-Backed Wheel Maker Files for Bankruptcy Protection

(Bloomberg) -- Wheel Pros, a maker of after-market specialty auto parts, filed for bankruptcy protection after struggling with inflation costs and a slump in demand. World's Second Tallest Tower Spurs Debate About Who Needs It How Americans Voted Their Way Into a Housing Crisis The Plan for the World's Most Ambitious Skyscraper Renovation UC Berkeley Gives Transfer Students a Purpose-Built Home on Campus Rome May Start Charging Entry to the Trevi Fountain The Colorado-based company, which announced a rebranding to Hoonigan in 2023, filed for Chapter 11 bankruptcy in Delaware. It listed assets and liabilities of $1 billion to $10 billion in its petition. Chapter 11 filings allow a company to continue operating while it works out a creditor repayment plan. The company has entered into a restructuring-support agreement with creditors and expects to cut approximately $1.2 billion of debt, while securing up to roughly $570 million in new capital, according to a separate company statement. Wheel Pros, founded in 1995 and acquired by Clearlake Capital Group in 2018, had raised $235 million last year in a deal that had favored certain creditors over others. The company expects to emerge from Chapter 11 within two months under the majority ownership of a group of its current lenders, according to the statement. The restructuring pact also provides a motion seeking to approve additional funds including a $110 million term loan debtor-in-possession facility. As a result, the company said it expects to continue operating during restructuring without impacting trade creditors. In addition, Wheel Pros signed an agreement to divest its 4 Wheel Parts retail stores, associated e-commerce sites, and certain other assets, according to another statement. (Updates to include agreement on divestment) 'They Have Stolen Our Business': When You Leave Russia, Putin Sets the Terms How Local Governments Got Hooked on One Company's Janky Software The Average American Eats 42 Pounds of Cheese a Year, and That Number Could Go Up Howard Lutnick Emerges as Trump's No. 1 Salesman on Wall Street Justice Is Beside the Point in America's Immigration Courts ©2024 Bloomberg L.P.