Superbike Factory

[Morety]

This was recently posted on their website, for anyone who might have paid a deposit or secured a bike from them:

Important Notice​

On 20 July 2026, Michael Lennon, James Saunders and Robert Halliday of KR8 Advisory Ltd were appointed as Joint Administrators of Superbike Factory Group Limited and Superbike Factory Limited (“the Companies”) pursuant to the provisions of the Insolvency Act 1986. The Companies have ceased to trade with immediate effect.

All enquiries regarding the Companies or the Administration, including those from customers, should be directed by email to [email protected]

The affairs, business and property of the Companies are being managed by the Joint Administrators, who act as agents of the Companies and without personal liability.

Looks like the end for them. I just hope no one on here (or anywhere else) has lost a bike or deposit as a result.

 

[wessie]

seems to have been the usual story of a family business sold to Vulture Capitalist who then load it with debt and run away leaving employees, customers and their supply chain in the lurch whilst the secured creditors get their money back.

 

[Kitsilano]

seems to have been the usual story of a family business sold to Vulture Capitalist who then load it with debt and run away leaving employees, customers and their supply chain in the lurch whilst the secured creditors get their money back.

@wessie
Up until 32st December 2024 this doesn't quite appear to be the case, but of course things change and there are reporting delays...

(see: https://find-and-update.company-information.service.gov.uk/company/15336016/filing-history).

Locate:
Group of companies' accounts made up to 31 December 2024

See: Section 16, 'Borrowings', page 36

Lines of credit available to December 2026.

 

[wessie]

@wessie
Up until 32st December 2024 this doesn't quite appear to be the case, but of course things change and there are reporting delays...

(see: https://find-and-update.company-information.service.gov.uk/company/15336016/filing-history).

Locate:
Group of companies' accounts made up to 31 December 2024

See: Section 16, 'Borrowings', page 36

Lines of credit available to December 2026.

I've been looking at the main operating company accounts not the parent group https://find-and-update.company-information.service.gov.uk/company/08037214
£82 million in sales and an £18 million loss in that year. Seems the cost of making those sales from staffing, admim to buying the stock cost them £84 million! They do seem to have unrealistic overheads in comparison to sales.

plus they have expanded rapidly since the accounting year that ended in Dec 2024, over 18 months ago

Note the interest rate in the Group accounts: base rate plus 8% - seems a tad high

I bet they have used all of those lines of credit and more.

At best, the management and directors are totally inept. Quite likely, charlatans.

 

[Morety]

An insider, a former Superbike Factory employee has gone on record and posted a youtube video explaining why he wasn't surprised this happened. He states that their focus was not on making sales but on all expense paid training over two weeks followed by placement in a team to buy and sell bikes. Sounds ok on the face of it but drill deeper and he says the focus was way off. An experienced motorbike salesman, he was expecting to be on the shop floor selling bikes but the reality was no/little face to face contact and an unrealistic emphasis on making calls. Even if the person he spoke to made it clear they weren't committing, and he knew it was a blind alley, they were expected to make a target number of calls with no emphasis on closing deals. When he did come through with two or three sales in one period, he was instead chastised because despite doing well on sales, he failed to meet their target for calls.

Their margins were about 10%, so reasonably healthy, but sales people had a high turnover as effectively they were relegated to working in a telesales environment and pressured to sit there making calls all day, not really selling bikes or exercising their experience or expertise. Their emphasis was on after sales thinking that providing diverse services from servicing and accessories this would be the main profit earner but that could not balance their overheads. The way they operated the business was simply not efficient, with huge amounts spent on training in telesales, combined with high turnover due to dissatisfied staff, this was unsustainable. As they paid bottom dollar for bikes to make their percentage profit target, and expended to become Europe's largest direct remote sales motorbike company. In doing so they also drove used prices down for other smaller dealerships selling on the traditional models, some going out of business as a result as they couldn't compete with SF pricing.

It seems to me that it was unsustainable as a business practice due to large overheads. Sure, they sold a lot of bikes but still made a net loss. Whilst things did seem to improve in recent times, it was too little too late. Will another company negotiate to keep the business? I doubt it given that this business model needs to significantly change. Flawed thinking, and people who worked for them with a real passion for motorbikes seem to have had their hands tied and forced into a system that demotivated them.

 

[Nick Marshall]

Just watched this.

 

[Oldrat]

A sad and sorry tale, and unnecessary to leave that bad blood too.

It looks like the financiers were running the show basing performance on the wrong metrics hence the emphasis on calls.

 

[sye]

Their margins were about 10%, so reasonably healthy,

No retail business can survive on a 10% margin, it's simply not enough. You need at least 30 - 40% minimum when you take wages, rent, utility costs, NI, pension contributions, rates and every other outgoing into account. That's not to mention servicing the stocking debt that they had to finance.

 

[wessie]

No retail business can survive on a 10% margin, it's simply not enough. You need at least 30 - 40% minimum

NO retail business?

Tesco seem to do okay on the gross 7.8% and net of 4%

I agree that no retail business selling vehicles can survive on 10%

As I pointed out above, SBF's overheads compared to sales seem all out of proportion in the latest published accounts from Dec 2024. The exposé from the former employee confirms this. I would lay money on the company being sold all of the telesales IT and training from a third party company that was effectively bleeding it dry by lending it money to cover the cost, knowing they would be first in the queue when the assets are liquidated.

 

[sye]

NO retail business?

Tesco seem to do okay on the gross 7.8% and net of 4%

I agree that no retail business selling vehicles can survive on 10%

As I pointed out above, SBF's overheads compared to sales seem all out of proportion in the latest published accounts from Dec 2024. The exposé from the former employee confirms this. I would lay money on the company being sold all of the telesales IT and training from a third party company that was effectively bleeding it dry by lending it money to cover the cost, knowing they would be first in the queue when the assets are liquidated.

Tesco turned over £63.6 billion in 2025, excluding fuel sales, so their small margin is enough. Unless you are turning over huge amounts of money like Tesco, Amazon and the like, small margins won't keep you afloat.

 

[Gee-]

They weren't slightly interested in my bike stating, too high a mileage for us to take in, Shame, Next!

 

[Davey B]

They weren't slightly interested in my bike stating, too high a mileage for us to take in, Shame, Next!

Sounds like a BMW main dealer....sell you a new bike as a continent bashing mega miler tourer....then suck thru clenched teeth when you fancy a swap and it's done 25k miles in 2 yrs....

 

[Gee-]

They are all the same, only just wanting low mileage seldom used models, too attract their loyal following, what loyal following? Like most, I go where the deal is best.
If I did not have to use a dealer, then I am quite happy to buy from a biker that likes to change their bike just because they can.

 

[wessie]

Tesco turned over £63.6 billion in 2025, excluding fuel sales, so their small margin is enough. Unless you are turning over huge amounts of money like Tesco, Amazon and the like, small margins won't keep you afloat.

I was being pedantic about the claim that "no business can survive on 10%"

you have reinforced my pedantry ...

 

[sye]

Pleased to be of service

 

[Ex-Call Centre Chimp]

I've just watched the video and having worked in a Call Centre for an international company for very long time everything he says resonates. All that mattered were the call stats, how many, how long each one was, how long between them, nothing else was relevant. I worked for the same company for over 40 years and could diagnose an issue over the phone within a few minutes of speaking with the customer but once we converted to a Call Centre I was told to disregard this information and knowledge, stop thinking and to 'Trust the process'.
New entrants would often ask me what my advice would be if they wanted to keep their jobs and my response was quite simple:-
'Never make the mistake of thinking we're here to help the customer.'
Sad but true.

 

[OnHellas]

Sounds like a BMW main dealer....sell you a new bike as a continent bashing mega miler tourer....then suck thru clenched teeth when you fancy a swap and it's done 25k miles in 2 yrs....

As someone that worked in the motorcycle trade that one always makes me laugh.

Why didn’t we want high mileage stuff??
Because the customers didn’t want to buy it.

I remember being told that we were ripping people off selling scrap because of a Honda VFR750 we had for sale was at the end of its life…despite it being in outstanding condition.
The customer’s reasoning? 25,000 miles!

 

[Davey B]

As someone that worked in the motorcycle trade that one always makes me laugh.

Why didn’t we want high mileage stuff??
Because the customers didn’t want to buy it.

I remember being told that we were ripping people off selling scrap because of a Honda VFR750 we had for sale was at the end of its life…despite it being in outstanding condition.
The customer’s reasoning? 25,000 miles!

Our across the pond brothers must piss themselves laughing at us...they'll go out and do 1000 mile ironbutt days and 15k miles a year and happily run 100k+ mile bikes (as they do on the continent...Limoges BMW had all sorts of high mileage bikes for sale..often 25 yrs old...57k miler 13 yr old GSA anyone... https://www.adventure-bmw.com/nos-occasions/bmw-r-1200-gs-adventure-2act-90e-anniversaire/ )

 

[boatman]

Ouch - I best get the lube read cos my wee 800 VStrom has racked 15 K miles in its first year .
Nah ,,,,,, I will just keep it ,, have it serviced and run it till it don’t work no more

 

[karlp]

No retail business can survive on a 10% margin, it's simply not enough. You need at least 30 - 40% minimum when you take wages, rent, utility costs, NI, pension contributions, rates and every other outgoing into account. That's not to mention servicing the stocking debt that they had to finance.

so you are referring to markup on sale vs purchase cost of product @30-40%