Japanese tuning firm Trust/Greddy declares bankruptcy
UPDATE: Trust has declared the Japanese equivalent of C11, but GReddy in the U.S. is apparently in good shape. Read all the details in our update post here and follow the jump for the most recent release from GReddy.
The market for aftermarket parts from Japan has been declining for well over five years, due in part to decreased demand both at home and abroad and the rising rates of Chinese knock-offs and other inexpensive (and dubiously built) components.
Today, one of the world's largest performance parts companies, known as Trust in Japan and Greddy here in the States, declared bankruptcy. According to various reports, Trust is approximately $60 million in debt and, after reporting a serious decline in sales since February 2008 and amassing $43 million in loan payments, filed for bankruptcy in Tokyo District Court.
Trust has been around since 1976, employs almost 200 workers and had been dealing in everything from CARB-legal exhausts to turbo systems when Greddy Performance Products was founded in the U.S. in 1994. There are several firms that will step up to fill the need of enthusiasts, assuming that Trust doesn't try to reorganize, but with the aftermarket industry down overall, we suspect this won't be the last time we'll hear about a large tuner going under.
[Sources: GTChannel, JDMInsider]
PRESS RELEASE
GReddy looks forward to continuing to provide quality high performance parts for years to come.
IRVINE, CA
OCTOBER 10, 2008
To insure the long term survival of the GReddy brand in the USA, GReddy Performance Products, Inc. has opted to file for Chapter 11, Reorganization, on October 10, 2008.
GReddy sales, customer service, R&D and operation will continue to conduct business as usual, through this process. The flow of inventory and new products will continue and will not be affected. Normal GReddy operating hours will remain as before.
This reorganization change is result of last month's Minji-Saisei-Hou filing of GReddy's parent company TRUST Co. LTD. in Japan. Although TRUST has now returned to production, and GReddy Performance Products has maintained normal business practices, the recent extreme downturn in the world's banking market has made this option the best prospect for continued operation and expansion of the GReddy brand.
It is also in the best interest of GReddy's future to join some of GReddy's competitors in the industry, in not exhibiting in this years SEMA Show. The withdraw is regretful, but necessary. This does not however mean development and construction of new products and demo vehicles which were planned to debut at SEMA will stop. Instead, GReddy plans on releasing news of these items through other media outlets very soon.
GReddy Performance Products, Inc. and it's staff would like to thank all the kind well-wisher, customers and industry associates for their support in these challenging times. GReddy looks forward to continuing to provide quality high performance parts for years to come.
The market for aftermarket parts from Japan has been declining for well over five years, due in part to decreased demand both at home and abroad and the rising rates of Chinese knock-offs and other inexpensive (and dubiously built) components.
Today, one of the world's largest performance parts companies, known as Trust in Japan and Greddy here in the States, declared bankruptcy. According to various reports, Trust is approximately $60 million in debt and, after reporting a serious decline in sales since February 2008 and amassing $43 million in loan payments, filed for bankruptcy in Tokyo District Court.
Trust has been around since 1976, employs almost 200 workers and had been dealing in everything from CARB-legal exhausts to turbo systems when Greddy Performance Products was founded in the U.S. in 1994. There are several firms that will step up to fill the need of enthusiasts, assuming that Trust doesn't try to reorganize, but with the aftermarket industry down overall, we suspect this won't be the last time we'll hear about a large tuner going under.
[Sources: GTChannel, JDMInsider]
PRESS RELEASE
GReddy looks forward to continuing to provide quality high performance parts for years to come.
IRVINE, CA
OCTOBER 10, 2008
To insure the long term survival of the GReddy brand in the USA, GReddy Performance Products, Inc. has opted to file for Chapter 11, Reorganization, on October 10, 2008.
GReddy sales, customer service, R&D and operation will continue to conduct business as usual, through this process. The flow of inventory and new products will continue and will not be affected. Normal GReddy operating hours will remain as before.
This reorganization change is result of last month's Minji-Saisei-Hou filing of GReddy's parent company TRUST Co. LTD. in Japan. Although TRUST has now returned to production, and GReddy Performance Products has maintained normal business practices, the recent extreme downturn in the world's banking market has made this option the best prospect for continued operation and expansion of the GReddy brand.
It is also in the best interest of GReddy's future to join some of GReddy's competitors in the industry, in not exhibiting in this years SEMA Show. The withdraw is regretful, but necessary. This does not however mean development and construction of new products and demo vehicles which were planned to debut at SEMA will stop. Instead, GReddy plans on releasing news of these items through other media outlets very soon.
GReddy Performance Products, Inc. and it's staff would like to thank all the kind well-wisher, customers and industry associates for their support in these challenging times. GReddy looks forward to continuing to provide quality high performance parts for years to come.
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Reader Comments (Page 1 of 3)
Dave B 3:37PM (9/10/2008)
I never thought Greddy would close down, they are such a great performance company. I just hope HKS and the others can survive.
Reply
Mike Short 12:10PM (9/11/2008)
Just so everybody on here knows, Greddy has not shut their doors as a company. They are still up and running, business as usual. I am a sales manager for TD Performance in Cincinnati, OH and we are a Greddy Dealer. So once again, they are not shut down, we're still placing orders and receiving parts, they are just re-structuring their company and trying to get their financial troubles in order.
hotwings1 4:35PM (9/12/2008)
No! No! No! No! NOOOO! I think I'm going to cry, i can't believe this.
Reply
Alex1217 3:57PM (9/10/2008)
I guess Fast and the Furious 4 came too late for Greddy.
In2uition 3:47PM (9/10/2008)
With people venturing towards knock-offs and eBay specials, its bound to happen (as sad as it sounds).
I can see A'PEXi and HKS facing a similar fate. :|
Reply
AkulaX1 5:41PM (9/10/2008)
Who is the girl in the avatar? she looks hot
The Luigiian 3:51PM (9/10/2008)
I say it's time to hand out a $50 billion bailout for this company. Those two hundred workers need jobs.
Wait, they already went bankrupt? Well, there goes that idea.
Reply
Jo. A. Borras 3:55PM (9/10/2008)
That's too bad re: GReddy, they always made quality parts and didn't destroy customer cars (unlike many "bargain" tuners). I'll be sad to see them go.
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Carlos 3:56PM (9/10/2008)
Wow this is awful.
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h311r47 4:04PM (9/10/2008)
Truly a sad day. It shows where the economy is when consumers still buy quality tuner cars, but bedeck them in cheap knock-offs. If anything, hopefully Greddy's loyal customers rally around one of the other quality tuner companies rather than the cheap stuff.
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Tourian 4:08PM (9/10/2008)
Wow. This is bad. I've bought many of their products and have been happy with all of it. I hope they will be able to reorganize and stay in the business.
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swimstarguy 4:21PM (9/10/2008)
Wow that sucks.
It's large aftermarket companies like that who have the cash for the much needed R&D. Who will Chinese companies and ebay scamers copy when all of the big names are gone?
~Zar4
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esteva03 4:26PM (9/10/2008)
this is really bad.
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Dont Belive The Hype 4:30PM (9/10/2008)
I love how Rich Boy Ben hyped this story up. Media Hype at its finest.
First of all:
This does not really mean much to anyone that's in the industry. Its not like they have a huge padlock on the doors and Trust is long gone. This really has no affect on the the US division Greddy since its not owned by Trust Japan.
Many of you might remember
Apex did this a few years ago and low and behold they are still here.
Realistically all that will happen is Trust will get some new investors, restructure their finances. Greddy will raise their prices and that's pretty much it.
Remember: If APC the biggest crap factory that ever came out of the tuner industry filed BK a few years ago and was bought out by Pilot Automotive. Low and behold same crap different mailing address.
I'm sure Trust will be ok...
Reply
Tourian 5:02PM (9/10/2008)
I'm not doubting you, just have some questions.
1. Who is Rich Boy Ben?
2. I thought GReddy was a wholly owned subsidary of Trust. If not, who owns GReddy?
3. If they can restructure and stay around like Apex'i, great, but comparing a turnaround to the likes of a "crap factory" like APC doesn't bring me any warm and fuzzies.
eclip5e 4:43PM (9/10/2008)
A facebook group for us all to reminisce about GReddy has been started.
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Red 4:45PM (9/10/2008)
Interesting. We just tapped them for a project.
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Hugh G 4:49PM (9/10/2008)
How can the aftermarket industry be in decline? I see more and more riceboys running around with fartcan exhausts everyday. But I guess maybe those morons are the ones buying chinese knockoffs on eBay instead of the real deal (Greddy, HKS, etc).
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tech9 5:42PM (9/10/2008)
i received a free GReddy Ti-C catback system from them in Irvine for letting them use my car (2005 Honda Civic Si) for testfitting. they have great products, i hope they can last.
Reply
Yar 5:15PM (9/10/2008)
You can't make a business out of selling stickers and fart cans.
Reply