Van’s Aircraft has filed for Chapter 11 protection while it reorganizes with the goal of maintaining existing services and emerging as a solvent company again. In a statement posted late Monday, Van’s tried to assure owners of 10,000 finished aircraft, builders and future customers the company has a future. “During this period of reorganization, we will continue to source, produce, and provide parts, service, and support to our customers. We will also be crating and shipping kit orders,” the company said.
The company blamed a maelstrom of issues for the decision, which was made about a month after company founder Dick Van Grunsven announced the company was pausing certain functions while it addressed a serious cash flow crisis. Two separate quality control issues, along with an imbalance of orders and deliveries due to COVID, led to the crisis. “The purpose of the Chapter 11 filing is to allow Van’s to continue to provide ongoing support for its customers, suppliers, and employees for many years to come,” the statement, which is copied in full below, says.
Statement By Van’s Aircraft On Chapter 11 Filing
On December 4, 2023, Van’s Aircraft filed for protection under Chapter 11 of the federal bankruptcy code, a key step in the reorganization of our company. During this period of reorganization, we will continue to source, produce, and provide parts, service, and support to our customers. We will also be crating and shipping kit orders.
Over the past few years, the company has faced a handful of complex issues, including unprecedented supply chain challenges throughout COVID, faulty primer that led to corrosion problems on quick build kits, and problems with laser-cut parts that were manufactured in response to high demand. As a result of this combination of issues, the company experienced serious cash-flow problems from which it could not recover through the normal course of business.
During that time, Van’s built up a significant and high-value parts inventory. As we manufacture the additional parts needed to balance this inventory, we will leverage it to fulfill orders for kits and parts over the next 12 to 18 months.
The purpose of the Chapter 11 filing is to allow Van’s to continue to provide ongoing support for its customers, suppliers, and employees for many years to come. We understand that this situation creates a hardship for everyone involved. However, without these changes we do not see a viable path forward that would allow Van’s Aircraft to remain in business and support its customers.