Mallard Posted January 20, 2012 Report Share Posted January 20, 2012 It's sad to see this happen. They made very high quality stuff at a reasonable price. All the people that worked there are true enthusiasts, including a close friend of mine that moved down there are director of R&D. It sounds like National Speed would be closing too, but the employees stepped up and bought the company so it would stick around. http://www.momentumperformance.com/ To all Momentum Performance Customers, Dealers, Partners and Enthusiasts: By many measures, 2011 was an amazing year for Momentum Performance. The team strung together a number of victories including the release of our 350Z/G35 product line, the addition of over 400 new dealers to our network, a world-wide customer base, and the development of new product lines for the Mustang and BMW. In countless ways the Momentum team demonstrated their ability to push forward and achieve remarkable things. However, while all this was happening there was another challenge in the background that was not being met with the same success. Momentum was founded with the goal of using technology and modern manufacturing, testing and procurement methods to bring exceptional products to the market at a fair price that all could afford (we were expecting to carve about 20% off the price of the Z/G product line in 2012). As such, there were significant upfront and ongoing costs associated with the effort, and it was critical that Momentum grow quickly to reach profitability while continuing to raise capital to meet the ongoing needs. Coming into 2011, due to a strong business plan and an exceptional team of employees and partners in R&D, procurement, manufacturing, distribution, marketing, etc.; Momentum had been able to raise millions of dollars and did not foresee any difficulty in continuing to do so. However, unfortunately in March of 2011 a dispute began when Momentum’s investment group tried to renegotiate the terms of a note with a minority investor. Unfortunately, this dispute evolved into a serious lawsuit which all but eliminated any opportunity of raising needed capital. (Investing in startups is risky by nature, but startups with investor lawsuits are beyond the risk tolerance of almost all investors.) There was never any denial of the investor’s financial claim—the company clearly owed the money but needed to renegotiate the terms. (And in a catch 22 situation, this need was only exacerbated by the ensuing lawsuit.) The issue instead (at least from the company’s point of view) was how can a compromise be structured that would allow the company to continue to raise capital, move forward and grow, and repay the investor’s debt over time. Throughout 2011, I believed logic would win-out and eventually an acceptable solution would be found. I knew the only way the company could survive was to find a compromise and settle, and that if the company ceased operations virtually all value would instantly be destroyed for all stakeholders—including the investor pursuing the lawsuit. I believed strongly that the opportunity to gain something through compromise would eventually trump the emotion and certainty of losing everything through an ongoing lawsuit, and as recently as last month I believed we had found a resolution. Unfortunately I was wrong, and the sad fact is that after almost a year the dispute is still no closer to being resolved. This has been a very disappointing and difficult time for the Momentum team who are all excellent people and fully invested their hearts and souls into the company, and I am extremely saddened to say that I now see no option but to close Momentum Performance since there is no way to continue without the needed funding. For those customers who have outstanding orders, please rest assured that we will continue to act with integrity and fully honor all current orders. We expect to ship all of these by the end of this week, and we will also do our best to make sure that any necessary tech support is available. I want to thank all of the Momentum Performance team members and partners. Their unwavering dedication to excellence, integrity, and the overall customer experience throughout the past years has been inspiring to me and I believe also to the industry. Furthermore, I want to thank our business partners like Deatschwerks, Garrett, TiAL, UpRev, Vibrant Performance, as well as many others who have helped us grow faster and become better than we could have on our own. For any company considering hiring a past Momentum Performance team member or partnering with a past Momentum Performance partner, you will not regret it. These are all excellent people who will deliver. Lastly, I want to thank all the Momentum Performance dealers, customers, and enthusiasts around the world. The ongoing and incredible support you have given our company and our mission has been overwhelming, and I am deeply sorry that I have let you down by not being able to resolve this matter in a favorable way. After nine months of trying to settle and maintain the value Momentum has built, it just doesn’t seem right that so much great work and so many great people should end in this illogical manner, but that is the sad and unfortunate reality we must face today. Thank you again for your past support, and I wish everyone nothing but the best in the future. Push Forward. George Taylor President/CEO Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted January 20, 2012 Report Share Posted January 20, 2012 Sounds like they will be up and running again under a new name soon. Quote Link to comment Share on other sites More sharing options...
Mallard Posted January 21, 2012 Author Report Share Posted January 21, 2012 Sounds like they will be up and running again under a new name soon. Doesn't sound like that will be happening....probably liquidating to pay the investor back, Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted January 21, 2012 Report Share Posted January 21, 2012 Either that or will just go bankrupt. Sounds like they had a good business plan that was profitable but got caught up in a bad situation. Easier to take the knowledge they had and start a new name. It appears they had success and most wont walk away from that. Better to restructure now than to drag it out and and be left with a name that has been drug through the mud. Quote Link to comment Share on other sites More sharing options...
Brrcats Posted January 23, 2012 Report Share Posted January 23, 2012 sad to hear Quote Link to comment Share on other sites More sharing options...
Linn1647545492 Posted January 23, 2012 Report Share Posted January 23, 2012 Should be to hard to keep all the jigs and make the kits under a different name. Quote Link to comment Share on other sites More sharing options...
Mallard Posted January 24, 2012 Author Report Share Posted January 24, 2012 Should be to hard to keep all the jigs and make the kits under a different name. I thought the same thing, but from the sounds of it they will be going bankrupt and everything will be sold off in order to pay off the investor. I'm sure each jig will end up somewhere, but not all in athe same place, and probably not in the former employee's hands. I have no hard information, but this is where it sounds like it's going. Quote Link to comment Share on other sites More sharing options...
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