Van’s Aircraft Files for Chapter 11 Bankruptcy Protection

The kit manufacturer has been struggling to recover from supply chain and quality control issues.

Tuesday, December 05, 2023 at 04:38 PM ET

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Van's Aircraft has been facing supply chain challenges, faulty primer that led to corrosion problems on quick build kits, and issues with defects in laser-cut parts. [Credit: Van's Aircraft]

Key Takeaways:

Van's Aircraft filed for Chapter 11 bankruptcy to reorganize due to severe cash flow issues.
The company's financial problems stem from COVID-related supply chain challenges, faulty primer causing corrosion, and defects in laser-cut parts.
Van's plans to continue operations, providing parts, service, and shipping kits during the reorganization, expecting to file a plan within 90 days.
Existing customers with open orders will face price increases, new terms, and revised shipping prioritizations, with specific plans for replacing faulty laser-cut parts already being developed.

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Kit manufacturer Van’s Aircraft filed for bankruptcy protection under Chapter 11 on Monday, announcing plans to reorganize the company.

The move comes a little over a month after Van’s announced a series of changes designed to combat “serious cash flow issues, which must be addressed quickly to ensure ongoing operations.” According to the company, the problems stem from COVID-related supply chain challenges, faulty primer that led to corrosion problems on quick build kits, and recent issues with defects in laser-cut parts.