Italian motorcycle manufacturer Benelli has been declared bankrupt by the Court in Pesaro after the company failed to pay suspension maker WP Suspension (a part of KTM Group company) an amount of €120,000 (INR 90 lakh) for supply of components.
Though Qianjiang Group, owners of Benelli brand assert that the company is financially sound and that they have plenty of funds to pay off debts, the court trustee has seized company’s inventory as collateral for amount owed.
Benelli has appealed to the Court of Appeal in Ancona to reverse this decision and states that it is financially sound. The company is in the process of repaying all its debts which are rumored in the region of €1 million. Even as the company denies bankruptcy, Benelli backed by China’s Qianjiang Group, has faced financial difficulties in the past claiming loss of €800,000 in 2014, which increased to €5.7 million in 2015.
Expansion to global markets is also being undertaken while the bike maker displayed a host of new and upcoming products at EICMA 2015 in Milan. Benelli in India has been seeing strong growth. It is one of the fastest growing motorcycle brands in the country offering products with competitive pricing.
Recently, DSK Benelli India opened an exclusive showroom in Jalandhar in North India from where the entire range of DSK Benelli superbikes are being sold. The showroom will sell the TNT 25, TNT 300, TNT 600i (ABS), TNT 600 GT, TNT 899, and TNT R. In India, Benelli also has showrooms in Pune, Mumbai, Bengaluru, Chennai, Hyderabad, Ahmedabad, Chandigarh, Kolkata, Delhi, Goa and Jaipur.