FUELL Inc., an electric bike and e-motorcycle startup built largely on behalf of legendary motorcycle visionary Erik Buell, has filed for Chapter 7 bankruptcy.
For a long time now, I've been trying to chase answers from electric bike maker FUELL regarding the company's failure to deliver on its popular Flluid-2 and Flluid-3 bike launches and the company's seemingly clueless attitude. After sifting through bounced emails from the now-terminated marketing staff, I finally got an answer in the form of a direct question answer from the company's CEO, Francois-Xavier Terny.
However, that answer did not come from Terny himself, but rather from an attorney who I learned is now representing FUELL in its new bankruptcy proceedings, which were filed yesterday.
Below is the text of the letter I received.
October 17, 2024
To our Creditors at Fuel Inc,
I currently represent Fuell Inc. in a chapter 7 bankruptcy proceeding filed in the US Bankruptcy Court for the Eastern District of Wisconsin on October 16, 2024 as case #24-25492. A trustee has been appointed to liquidate the assets of the Company. All creditors will be advised to apply to that process as it appears that there may be assets for the payment of unsecured claims after all secured claims have been paid or dealt with. A copy of the Notice of Charge is attached.
Management regrets that the Company has been forced to take this approach. Unfortunately, the Company does not have the funds to pay for the labor costs and other services required to assemble and ship the products to its customers, and additional funds could not be raised to pay the Company's current liabilities or to cover the assembly and shipment of previous goods. -order electric bikes. I hasten to add that the Company has what it believes are the parts needed to assemble most, if not all of the pre-ordered electric bikes.
After consultation, management determined that an immediate chapter 7 filing was the best option to provide for the number of significant assets held by the Company including, but not limited to, the purchase from the delinquent trustee of substantially all of Fuel Inc.'s assets. he is an interested person, who may then, through effort and negotiation, be able to resume work and move forward. Obviously, this is the approach preferred by managers, but it is complex and fraught with risk. Any creditor or interested party with such an interest should consider retaining an experienced bankruptcy attorney to negotiate with the Trustee regarding such a transaction.
Since the Company has little capital, and no employees, it cannot answer creditors' questions directly about certain orders. Creditors may direct inquiries to the Trustee who will be informed of the situation. Since there are no employees in the Company to answer questions at this time, current questions to the company will not be answered.
All known creditors will receive notice of the filing and be advised to file. If you have placed a deposit to purchase a product, your claim may be entitled to some degree of priority. You may want to consult an attorney on this matter.
Great effort is made to provide sufficient information in the bankruptcy schedules so that there is at least a chance that a potential buyer of the assets can restart the Company or re-issue the assets to produce the intended product. Current shareholders will lose everything invested in the company through this chapter 7 bankruptcy filing.
We hope that this information may be of some comfort to you as owed by the Company and will certainly give you an idea of what to expect in the near future. As indicated above, you will be notified of the bankruptcy filing as a creditor or other interested party.
If you are interested in purchasing assets through the bankruptcy process or know of anyone who might be interested, you can contact the Trustee or the undersigned to discuss possible ways to accomplish this.
Sincerely,
PAULG. SWANSON
Attorney at Law
The deadline for submitting applications is set for December 26, 2024, as explained in the notice accompanying the above letter from Fuell's attorney.
Chapter 7 bankruptcy is a legal process in the United States that allows individuals or businesses to eliminate most of their unsecured debts by liquidating undischarged assets. A court-appointed trustee oversees the sale of these assets, and the proceeds are used to pay creditors. It is often called “bankruptcy” because assets are sold to pay off debts.
In this case, the bankruptcy trustee for FUELL is Titania D. Whitten of Whitten Law Offices in Wauwatosa, Wisconsin.
FUELL Inc. was founded in 2019 as a new electric bicycle and motorcycle company, gaining momentum immediately after the unveiling of high-performance electric bicycles, designed for urban commuting. Founded by Erik Buell, a legendary figure in the motorcycle industry, FUELL focuses on combining sleek design, advanced technology, and sustainability in its electric mobility offerings.
The company's first electric bike model, Flluid-1, was widely considered a success, but controversy surrounded FUELL's Flluid-2 and Flluid-3 models, which raised more than US $1.5M in an Indiegogo crowdfunding campaign but failed to deliver to scale. .
Shortly after the end of the campaign, I had the opportunity to test ride one of the pre-produced Flluid-3 electric bikes at Eurobike 2023. At the time, the bike performed very well and promised a refined rider experience. However, the company explained that Valeo's internal mid-drive motor was a sticking point in production, requiring more customization and production cuts.
A steady stream of updates slowed down over the next year and eventually came to a complete halt, leading many to worry that the project had been abandoned or that the company was on the verge of bankruptcy.
Several bankruptcies of high-end bicycle companies have added fuel to the fire, yesterday's announcement finally closed the question, although it is unlikely that hundreds of customers will ever get FUELL Flluid electric bicycles.
With more than two months left for creditors to file for bankruptcy, hopefully those customers will be able to get some or all of their money back.
FTC: We use auto affiliate links to earn income. More.
