Vectrix prepares for bankruptcy
July 15, 2009
Vectrix Corporation has notified dealers that they’ve been unsuccessful finding new investors and are preparing to file for bankruptcy:
July 14, 2009
Dear Vectrix Dealer,
Most of you are aware that Vectrix has been seeking new investors and or a purchaser for our business. To date those efforts have not met with success.
As all of you know these are some of the most challenging financial markets in our industry’s recent history and our ability to continue as an independent company is doubtful.
It is with extreme regret that I need to inform you that we have taken additional reductions in our operations and without new funding preparing for a bankruptcy filing over the next 30 days. I am attaching the press release that we published today.
I want to thank you for your support and vision you shared with us in the electric market. In my heart I don’t believe Vectrix will disappear but today we have to deal with the financial realities.
The Vectrix was expensive and imperfect, but whatever happens, it will always be remembered as the first and arguably best electric scooter of its era. Reading all the press hype about the not-all-that-great, long-delayed, and equally expensive Piaggio MP3 hybrid in the past few weeks makes this news all the more sad. A Vectrix dealer tells me “It is a shame (Vectrix) did not focus on improving the one product they had but instead spent millions on new products and future R&D that never came to market.” I agree with that, a three-wheeler and two cheaper, less exciting models seem rather foolhardy when the flagship product never sold well in the first place, but it probably made sense to explore other products.