1 min read.Updated: 08 Apr 2020, 11:39 PM ISTAmit Panday
The 122-year-old brand is in liquidation after it ran out of cash and failed to pay taxes
The UK government plans to sell off Norton, its assets and product port-folio to raise funds
Homegrown two- and three-wheeler manufacturer TVS Motor Co. Ltd is in talks with iconic British motorcycle maker Norton Motorcycles (UK) Ltd to own the brand, as well as its assets and liabilities, two people aware of the development said on condition of anonymity.
The 122-year-old Norton Motorcycles ran out of cash in January and failed to pay taxes. Norton’s last owner, Stuart Garner, with business interests in real estate and hospitality, had acquired the legacy brand in 2008.
“Norton is in the liquidation stage currently and the administration in the UK plans to sell off the brand, its assets and its product portfolio to raise funds. The company has to pay its vendors, employees and creditors and also pay tax dues. So, there are a lot of liabilities on Norton at the moment," said one of the two persons cited above.
Consultants handling Norton’s case are in talks with several potential buyers, including TVS Motor, he said.
“It is perhaps a good time to bargain hard," said the person.
Advisory firm BDO Global, handling the liquidation of Norton, had put out a notice on the company’s Twitter handle on 30 January.
“The administrators are taking all steps to ensure that customers, staff and suppliers are supported, and want to minimize distress for all involved," BDO Global said.
In response to Mint’s query, TVS Motor said, “TVS Group does not comment on any market speculation."