Ant Anstead: Radford Motors Will Go On Despite Bankruptcy, Lawsuits
Radford Motors, founded three years ago as a sports cars maker, has filed for Chapter 11 bankruptcy protection.
Radford has been sued by different parties, but the company says all suits have been dismissed.
It has completed two of its 62-2 sports cars so far, it says, with seven more in the works.
Radford Motors will continue to make cars and stay in business despite filing for Chapter 11 bankruptcy protection last week, its celebrity co-founder said.
"Radford is amid a strategic restructure while remaining fully operational,” said Ant Anstead, TV presenter and CEO of Radford Motors. “I remain committed to Radford’s vision and growth. Along with Jenson (Button 2009 F1 champ) and Dan (Bednarski, the new CFO/COO), we maintain our commitment to excellence that has defined Radford from day one.”
Most of the public first heard of Radford Motors three years ago when it licensed the name Radford Racing School to the entity formerly known as the Bondurant School of High Performance Driving.
The track and school, named Radford Racing School, was licensed by Radford Motors and its parent company Finest Coachbuiliding Inc. and is part of the agreement and the dispute. Radford Racing School was acquired through the bankruptcy by Pat Velasco, who is one of those suing.
A few months after the Bondurant announcement, Radford revealed a Lotus Evora-based sports car it said it intended to produce. That car was called the 62-2. So far, according to Radford, it has completed two of those cars and is working on seven more.
Radford didn’t say whether the two cars it produced have been delivered to customers. The original announcement said they’d limit production to just 62.
But making cars is hard, as anyone who has ever tried to do so can tell you. Apart from Tesla—and even that was tenuous for a while—very few new carmakers succeed. As a result, at least one customer, Timothy L. Vance, filed suit to recover his deposit of $101,000.
Another suit came from Holland Automotive USA dba Lamborghini Palm Beach, in Florida. A third came from Velasco, who owns the Radford Racing School.
Anstead said the company has seen a total of five lawsuits dismissed for lack of evidence. Those suits were filed against Radford parent company Finest Coachbuiliding.
Among the accusations in at least one of the lawsuits was a claim that deposit money meant for car construction was used for various personal expenses by company executives.
“The allegations in the suits that deposit money intended for car production were spent on other things as well as on personal expenses is false,” said CFO/COO Dan Bednarski. “The funds to purchase vehicles were used for operating expenses, not personal expenses.”
One lawsuit said that before Bednarski became CFO/COO, he had been the “life coach” of CEO Anstead.
“Ant and Mr. Bednarski met through a personal development program that Mr. Bednarski was involved in,” said a statement from Radford Motors.
The company says it intends to deliver cars to customers who have ordered them.
“This debt restructuring is necessary for the future success of the company,” said Bednarski.
“The company has been in court five times already to address these civil suits, and every time to date, the judge has cited insufficient evidence for these claims of mismanagement and fraud, which have been dismissed and then appealed, repeatedly. The debt restructuring allows us to move forward with changes in ownership in a way that allows us to continue operating our day-to-day business.”
Of the original founders highlighted three years ago, Anstead and F1 champ Jenson Button remain. Founder Roger Behle “asserts a minor ownership interest,” and designer Mark Stubbs “is not currently a part of the company.”
“As people leading this company, we understand the unique challenges that come with building a premium car brand, including the importance of having partners whose values and vision align completely with our mission,” said Anstead.
“Like many entrepreneurial ventures, our journey has presented both opportunities and challenges. We are grateful for the continued support from our community and remain fully dedicated to advancing the brand’s prestigious heritage."
Bednarski further clarified Radford’s plans:
“We entered into financial restructuring to protect our growing company while we work to address these baseless allegations. As a small but passionate team, our goal remains unchanged: to make meaningful contributions to an industry that we deeply value. We’re actively working toward solutions that will allow us to continue this mission.”
Anstead sounds equally optimistic.
“Indeed, this is only the beginning. With five court cases from opposing members already dismissed, the continued attempts to sensationalize unfounded allegations are telling,” he said. “Such behavior demonstrates precisely why we aim to distance our brand from these individuals. Time will reveal the full truth as proper legal proceedings unfold.”