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

Verified

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 has filed for Chapter 11 bankruptcy protection to reorganize and address severe cash flow issues.
The financial difficulties stem from a combination of COVID-related supply chain problems, faulty primer leading to corrosion, and defects in laser-cut parts.
During the reorganization, Van's plans to continue operations, including shipping kits and providing support, but customers with open orders will face price increases and modified terms.
The company is developing specific plans for affected customers, including replacement programs for defective parts and reviewing existing kit and parts orders, all pending court approval.

See a mistake? Contact us.

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.