Motor Authority : GReddy still in business despite Trust bankruptcy

[g8crasher]

Source : http://www.motorauthority.com/news/industry/greddy-still-in-business-despite-trust-bankruptcy/#more-7124

GReddy still in business despite Trust bankruptcy

Posted on Friday 12 September 2008

Earlier this week the Japanese tuning and aftermarket parts firm Trust filed for bankruptcy in its home country. The GReddy brand is the U.S. extension of the Trust corporation, but is fortunately a separate corporate entity. The company today released a statement that the bankruptcy of its parent organization won’t affect GReddy’s operations in any way.

In fact, Trust itself may not dissolve and end its business operations. As in the U.S., bankruptcy in Japan is a business tool of last resort for continuing to do business while restructuring internally. It certainly represents a serious step, but fans of the American GReddy Performance Products won’t need to worry about their current or future supply as a result of the financial situation across the Pacific.

The team at GReddy is still planning to take its line of products and a trio of new customized vehicles to the SEMA show in Las Vegas this November as well. The display booth and vehicles will feature a wide range of the company’s output, including all-new products for 2009. According to GReddy’s Kenji Sumino, existing stocks of supplies are expected to last through Trust’s restructuring, which the American affiliate is helping to facilitate.

GReddy was founded in 1994 by Trust as the U.S. distributor for its products. Since then it has built a reputation in the tuner community for strong products and good customer service. Trust was founded in Japan in 1976, and has grown to employ 190 workers. The current financial predicament has come about as a result of a major drop in sales this year and the accumulation of nearly $60 million in debt.