Hoonigan, the lifestyle and apparel brand established by the late rally icon Ken Block, has filed for Chapter 11 bankruptcy protection as it works to reorganise and manage its heavy debt load. Now part of Wheel Pros, an aftermarket wheel company owned by Clearlake Capital, Hoonigan is looking to eliminate $1.2 billion in debt while raising up to $570 million in new capital to stabilise its financial situation.
Originally created as Ken Block’s personal lifestyle venture, Hoonigan gained widespread recognition through its popular YouTube channel, “The Hoonigans,” boasting over 5.73 million subscribers. After Block’s passing in 2023, the channel saw much of its original talent depart, contributing to significant changes in the brand’s direction.
In October 2023, the Hoonigan brand took a new path as Wheel Pros rebranded all of its businesses under the Hoonigan banner, incorporating well-known aftermarket brands like TSW, American Racing, and Rotiform. The combined entity accumulated a staggering $1.75 billion in debt, prompting the current bankruptcy proceedings aimed at restructuring and wiping out a significant portion of that debt.
Despite these financial challenges, Hoonigan’s management describes the bankruptcy as a “strategic transaction” intended to build a stronger foundation for future growth. However, the brand that was once synonymous with Ken Block’s rallying legacy and a dynamic YouTube presence has undergone considerable transformation, leaving its future identity and cultural impact in question.
