Superbike Factory, Europe’s largest used motorcycle retailer for years, has officially entered administration after posting losses of more than €21.3 million (£18.3 million). The British company, which sells more than 15,000 motorcycles annually, has closed its dealerships and suspended its online sales platform.
The company entered bankruptcy proceedings after several unsuccessful attempts to secure new investment. This fall, thousands of customers are waiting for answers regarding warranty, servicing and outstanding purchases, while a large stock of used motorcycles remains in limbo.
From market leader to bankruptcy
Founded in 2010 by Scott Behrens and James Watson, Superbike Factory transformed the UK used motorcycle market by buying motorcycles in bulk through platforms such as WeBuyAnyBike, refurbishing them centrally and selling through large retail centers and its own online platform.
The company expanded rapidly across the UK, opening major dealerships in Donington Park, Bradford, Bristol, Milton Keynes and Crawley, and becoming Europe’s largest specialist used motorcycle retailer.
Its financial situation deteriorated rapidly during July, when the directors sought court protection while they searched for a buyer. A few days later, the company’s website was replaced with a legal notice and the dealership was closed without warning.
Strong sales cannot offset rising operating costs
Despite selling more motorcycles than ever before, the superbike factory’s financial results exposed the scale of its difficulties.
During 2024, the company generated revenues of approximately €96.5 million (£83 million) by selling 15,036 motorcycles, up from 13,588 units the previous year.
However, operating costs wiped out almost the entire gross profit, resulting in an operating loss of €18.7 million (£16.1 million). After taxes and accounting adjustments, the total loss reached €21.3 million (£18.3 million).
The company also attributed a significant portion of those losses to the loss of a €16.9 million (£14.5 million) investment in its subsidiaries.
High finance costs and weak demand hit business
The decline also reflects broader changes in the motorcycle market.
High interest rates have made motorcycle finance quite expensive, while weak consumer spending and the introduction of Euro 5+ regulations have disrupted new and used motorcycle pricing.
Additionally, strict regulations governing finance commissions further reduced already narrow profit margins, making the business model difficult to sustain.
Another warning sign for the motorcycle industry
The collapse of the Superbike factory followed a series of financial difficulties affecting many British motorcycle businesses.
Companies including Completely Motorcycles, Mutt Motorcycles and CCM have all experienced severe financial challenges in recent years, highlighting the increasingly difficult trading environment facing manufacturers and dealers.
Once considered Europe’s leading used motorcycle retailer, Superbike Factory eventually fell victim to a combination of aggressive expansion, rising operating costs and a rapidly changing motorcycle market.
Image: TodoCircuit
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