Hoonigan In Bankruptcy with 1.2 BILLION IN DEBT! I Saw This Coming

what's up guys before we get to today's video it's your last chance to get involved in a giveaway which is going to land you a spot on one of the adventure dri trips we have one left for 2024 and that's starting in Charleston driving the Tail of the Dragon going to the back of the Dragon driving through Green Brier which is the gorgeous Resort in white sulf for Springs West Virginia and ending in Washington DC I'm going to include your flight I'm going to get you a car you can pick one of my uh sports cars it's local enough that I can ship a car down for you so you can pick just say you want the 488 you want the Huracan whatever you want we'll get that included in it um just no SUVs don't don't pick one of my SUVs pick a sports car uh but it's going to be a good time the only thing you're going to pay for is gas that's going to be October 9th through the 13th I'm going to do the giveaway and have a drawing before I go to Germany um that's going to be the 21st so we have about 10 days in which you can enter this contest I'm going to do 500 up to 500 posters cuz even the last one we only sold 400 so it's going to be up to 500 posters Link in the description to Super Speeders decom and one of you guys I will see you out there it's going to be a good [Music] [Applause] time all right guys so news was was going a little bit further than the usual car car channels right when when the car channels are not reporting it and then you start seeing it on more larger networks you got a big story well guess what hunigan is filing for bankruptcy and that's like okay whatever I sort of expected that I wasn't expecting the debt load they have $1.2 billion do in debt right now like like what was I want to see km blocks credit card bill no hunigan was acquired by uh venture capital firm and that rolled in with a bunch of other brands that they were buying up back in Co everybody has all this money and they're buying all this stuff so hoonigan started about 10 years ago a little over 10 years ago you guys can fact check the crap out of me because I know the surface level stuff I don't know the details and I don't really care about the details but I'm going to tell you essentially what happened why it happened why I'm not surprised but also this could be a a big firm like that could be loading other debt into this B ancy to clear their books from other stuff so there could be other things involved there that may be surprising if you start really going through the line items because this could have been something they've been working on for a while but I saw this coming and a lot of people would say like yeah of course hoonigan's shutting down cuz Ken Block passed and he was a huge part of hoonigan it's got nothing to do with that then you had all these other Talent guys that were on hunigan that were systematically leaving and that's the telling statistic and that generally isn't because they're unhappy with the direction right that's the story you're always going to get like yeah we're having our creative differences 99.9% of the time it's always going to come down to money and the creative differences are generally we're not going to pay you the same amount of money we've been paying you we're going to cut back how much we're paying you your budgets are going to be reduced and they sort of strangle the talent into producing the same or better content with less money so they're getting rewarded less and then the company is trying to make more so that that is pretty much why the talent leaves a company whether it's drive or Motor Trend or anything like that it's usually when the money dries up and that's the indicator that somebody is now saying you know what we've been floating this growth model of like we're going to do whatever and we're going to grow the company and we're going to invest in it and they're like all right well now we got to start making money and so now we can't be spending $120 to make 50 so that's usually when that seesaws that is usually signaling the beginning of the end now also you're going to see YouTube has been the ad sense game or the ad Revenue that is out there the ad purchases the ad buyers are buying significantly less and if you have a business model that is relying on that for your cash flow and your Revenue you're strangling everything out of the company and there's no surprise that this happened now the 1.2 billion that's the big shocking number that everyone's going like holy crap like how do you have a 1.2 who's lending if your 800 million in debt who's giving you another 400 million in credit it's it's a lot more complicated than that I will let somebody in the financial realm go into that but you're you're wrapping in a bunch of businesses which are also anyone that says that the economy is great right now I'm going to have to have a hard disagreement on that right business is down here my rentals were slower by 10% this year and I know everybody else I talk to it's down sure some people are doing great but a lot of people aren't if you look at Key indicators like the repossession rates the amount of credit card debt the amount of people defaulting on stuff the interest rates on everything and the fact that people are then borrowing at these higher interest rates because they need to borrow you start adding it up or you look at the the the depreciation on cars now we didn't have this a couple of years ago now all of a sudden all the cars that that these people were buying for like three years old but they're paying 3,000 over MSRP for a Tesla or something like that with 30,000 miles on it or a Subaru you're running into a situation where now they're like oh crap that $15,000 car that I paid $440,000 for and got a loan for is now worth 10 like it should have been and now I'm stuck because I still owe 26 on it so you have all these people upside down on loans you've got all this just hodgepodge of like people not spending money as freely because they don't have it as much and it's more expensive to borrow it so if they're going to borrow it they're not going to go spend it on stupid stuff they're going to spend it on stuff they need and the writing is on the wall right like I still don't get why and my personal accounts I moved a bunch of it to cash right like there's uh through my brokerage they've got a cash account pays me over 5% interest I'm like I'll take the 5% guarantee and hedge against all this stuff am I a financial adviser no am I usually pretty good at gut checking this yes like everybody saw this coming in like 082 anytime there's this huge like financial crash you sort of have to be ignorant to ignore all the indicators and say like oh uh this is good nothing's nothing's happening like let's like the Market's great there are more people on the planet right this is my top level stuff there are more people on the planet more people spending money but people individually are spending less does this affect the wealthy no that affects most people which drive the economy it drives companies willing to spend money on sales all of this stuff is cyclical again I am not an economist I'm not a financial adviser but I am not surprised that when you see a company starting to have everyone vocally and verbally saying like I'm out I'm leaving this company it's generally not just because they don't like their manager and there's a lot of people that stick out jobs for a long time as long as they feel like they're being treated fairly and they're being fairly compensated reverse that as long as they feel like they're being fairly compensated and then as long as they're treated reasonably well you're willing to accept some some not great treatment as long as you're being paid well it's when you're not paid well that it's signaling the beginning of an end for a lot of companies now there's a lot of companies that are that are going through this hoonigan is still going to be around right it appears that they're going to be restructuring through bankruptcy and they've got to have some sort of assets I don't know where a billion two comes from like that that's to me even with these companies like the companies have all this inventory stuff like that there's there maybe 40 50 million if you told me $50 million I think it's a lot 1.2 billion is nuts that's like another level that that would almost be like grounds for suing somebody for mismanaging this whole conglomerate but unless they're doing like rich people Financial games and they're shoving all this bad debt into a bankruptcy to get off of it and get out of it from other companies we'll see what happens but uh it's not what you think it's not like they just ran up a big credit card bill or they've got these and even if they bought 20 warehouses 50 warehouses across the world and they filled them up with cars cars are worth money like there're still on the balance sheet there's still assets there this to have 1.2 billion in debt I would assume that they may be talking that they have more debt than they do cash or assets so their books are upside down by 1.2 billion because I saw another number that said 1.7 billion either way those are big numbers so to take something from a a small little brand that that launched hard and did phenomenal while while Ken was running it and then it being sold to a corporate company no surprise but also holy crap stay tuned it's not going to be the first one that's the same thing I've always said in the rental game I will stick out these these uh dips and waves in the economy and the companies that don't belong in my industry always go out of business and as long as you stay the course and you stick to your game plan you're usually going to do pretty good Rob Freddy thank you for watching see you tomorrow [Music] a [Music]