The suspension company had several tax liens issued against them in recent years.
Southern California-based company AccuAir Suspension is officially calling it quits and filing for bankruptcy with the sharp downturn in the economy to blame. The mainstay for air suspension in the aftermarket community took to Facebook earlier today and shared this devastating news with their fans.
Check out their post including an e-mail to customers below.
Accuair suspension permanently shuts down, files for bankruptcy pic.twitter.com/ss1UHVyBiS— Paulo Acoba (@ferio_252) April 2, 2020
In the post they share how initially they hung their hopes on only being closed for two weeks, but the extension of the state and county’s “Shelter in place” order did not bode well for future business.
According to their post, Accuair Suspension A.K.A. AccuAir Control Systems has key investors with decision-making powers above their titles that made the decision to close for them.
AccuAir’s LinkedIn page describes their company as a “Partnership.” According to Investopedia, “A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.”
Chapter 7 Bankruptcy is also commonly referred to as liquidation. According to Credit Karma, “liquidation is a legal option that can help you clear some or all of your debt. But it will also mean having to surrender assets, like property or cash, to do so.”
AccuAir suspension LLC received tax liens from the county and federal levels of government.
According to publicly available records via the San Luis Obispo County Clerk-Recorder, SLO County and the IRS issued a handful of tax liens against AccuAir in recent years. Here’s a screenshot of all 15 records made public spanning between 2014-2019.
I am no financial expert, but these above issued liens are not indicators of a healthy company and is probably the tip of a financially struggling company iceberg.
Unrelated to the above liens is publicly available information filed by Newtek Business Solutions, a direct lender that specializes in small businesses, to the SEC listing their full list of investments in a quarterly report to investors. It appears Accuair applied for and received a $150,000 loan in 2016 payable over 10 years.
This was after Collaboration, a business consulting firm, came in around 2014 and helped Accuair Suspension with their productivity and sales challenges.
Why they needed that extra cash, a company capable of earning $7.1M just two years prior, your guess is as good as mine.
Leaving behind a legacy of quality suspension componentry
AccuAir suspension has been a mainstay in the aftermarket air suspension business for the greater part of two decades. StanceWorks has a great piece on this company’s history including their rise from obscurity. AccuAir is the first air suspension company to offer a user-friendly electronic leveling system for the aftermarket car community with its core technology relying on electronic ride height sensors to measure vehicle height.
Their rise to air suspension cream of the crop came with the introduction of their E-Level system which “monitors and corrects for load changes while the vehicle is driving.”
Their suspension systems took out the guesswork of setting up an air suspension system and, with E-level, made a ride and handling suspension system that felt on par with top of the line static suspension systems.
Is this signs of times to come for aftermarket automotive companies?
AccuAir suspension might be one of several aftermarket automotive companies that will fold during this economic downturn. With many Americans pinching pennies thanks to reduced hours, no jobs, and dipping into savings, expenses for hobbies like automotive customization are put on the back burner.
Whether an aftermarket automotive company will survive is based on how well they were prepared beforehand and how innovative they are to pivot to other revenue streams. For example, companies like Magnaflow, who also produce catalytic converter catalysts, are now relying more on their OEM supply chain partnerships as their main source of income.
It is tough times for the car community. Some won’t make it, others will innovate, and the aftermarket automotive industry is guaranteed to come back stronger than ever.