Financial turmoil contributed to Ducati Redmond closure, records show

Financial turmoil contributed to Ducati Redmond closure, records show

NobleRush owner owed nearly $2.7 million on new bikes.

It’s been two weeks since the abrupt closure of NobleRush’s five motorcycle dealerships, including Ducati Redmond.

A lawsuit filed on Sept. 25 states VW Credit, a Delaware corporation that lends money to car and motorcycle dealerships to purchase new inventory, sued Howard Crow. Crow, a Microsoft executive, owns NobleRush’s five locations.

VW Credit claims Crow and several of his companies defaulted on nearly $2.7 million in loans to finance the purchase of 170 Ducati motorcycles and other equipment, according to the lawsuit filed in King County Superior Court.

According to the suit, Crow and his companies failed “to make payments when due under their loan agreement with [VW Credit] and other defaults under the loan agreement.” Crow refused to voluntarily surrender the bikes, which resulted in collateral for the loans.

In May 2018, Crow and several of his companies entered in agreement with VW Credit for the financing of a “large volume” of motorcycles, other vehicles, and equipment.

The suit says 83 of the Ducati motorcycles went to the Ducati location in Redmond, and the other 87 went to the Seattle location. The 170 Ducati motorcycles were high-performance, high-end motorcycles each retailing more than $6,000.

At the Redmond location, Stephen Hansen of JHS Properties, who manages Redmond Town Center (RTC) said they did not know about the abrupt closure. They received no pre-warning or notice from Crow.

“It’s a big loss,” Hansen said. “I can’t imagine Ducati not having a dealership here. It’s a great location for them…this is a great market for them with Microsoft being here.”

Hansen said RTC hasn’t had problems with Ducati in the past. He said they paid rent on time and he believes they were not in any sort of monetary default.

Redmond resident Bill Chappell said he bought a Ducati bike three months ago. He said he did not receive any type of notice about why the shops, including the one in Redmond suddenly closed. Stephanie Quiroz/staff photo

Redmond resident Bill Chappell said he bought a Ducati bike three months ago. He said he did not receive any type of notice about why the shops, including the one in Redmond suddenly closed. Stephanie Quiroz/staff photo

“It’s shocking,” Redmond resident Bill Chappell said. “They are the main Ducati dealership on the [Eastside]…it’s unfortunate.”

Chapell said he bought his bike from the Ducati Redmond three months ago. He said he had gotten a flat tire during the time of the closure but did not receive any type of notice about why the shops, including the one in Redmond suddenly closed.

According to Hansen, Crow emailed him claiming they would reopen the Redmond location. The date of the proposed reopening is still unclear, as Hansen has not heard from Crow.

VW Credit notified Crow and his companies that they were in default and demanded Crow pay the amount of nearly $2.7 million by Sept. 24 or surrender the inventory. VW Credit filed the lawsuit when Crow and his companies failed to pay and return the motorcycles.

All five locations: Ducati Redmond, two multi-brand dealerships in Auburn, Ducati Seattle and BMW Motorcycles of Seattle remain closed.


In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@redmond-reporter.com.

To share your opinion for publication, submit a letter through our website https://www.redmond-reporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in Business

The Moe Vegan food truck serves meals at the city of Kent’s annual Community Thanksgiving Dinner on Nov. 21, 2020. Sound Publishing file photo
King County fire marshals offer regulatory relief to food trucks

39 fire authorities have reportedly agreed to standardize fire codes and inspections.

Teaser
First large-scale, human composting facility in the world will open in Auburn

“It’s what nature meant us to do. We just do it faster.”

Mayuri International Foods partners, left: Mahidhar Reddy center: Neeraj Poudyal right: Ramesh Bachala (photo credit: Cameron Sheppard)
Mayuri International Foods grocery store to open in Redmond Town Center

The store will include a unique produce selection and an extensive menu of prepared hot foods.

“You stay, we pay,” promotion (photo credit: Bullseye Creative)
The city of Redmond wants to pay you to stay there

New tourism promotion will give $100 gift certificates for local businesses to guests at 8 hotels.

Whole Foods grocery store entrance (Shutterstock)
King County considers grocery store worker hazard pay for those in unincorporated areas

The King County Metropolitan Council will vote during its next meeting on… Continue reading

Screenshot
WA Democrats consider new tax on billionaires

Plan could raise $5 billion from fewer than 100 taxpayers. Detractors fear it could drive Washington’s wealthiest out of state.

Last summer, people took advantage of the outdoor dining along First Avenue between Gowe and Titus streets in downtown Kent. In Phase 2 of the governor’s reopening plan, which was announced Jan. 28, restaurants can reopen at a maximum 25% capacity and a limit of six people per table. Photo courtesy of Kent Downtown Partnership
Restaurant reprieve: State to relax some indoor restrictions

On Monday, area restaurants and certain entertainment venues may resume indoor service, the governor said.

Stock photo
State Senate passes $1.7 billion in unemployment insurance tax relief

Targets relief to the most affected businesses; helps low-wage workers by raising their benefits

Jason Wilson is a James Beard Award-winning chef and owner of The Lakehouse in Bellevue. Courtesy photo
James Beard Award winner wants to cook with you – virtually

Chef Jason Wilson can give customers an interactive dining experience in their own homes.

2021 Chevrolet Blazer. Courtesy photo
Car review: 2021 Chevrolet Blazer

By Larry Lark, contributor When it comes to certain car models they… Continue reading

2021 Lexus RX 350L. Courtesy photo
Car review: 2021 Lexus RX 350L

By Larry Lark, contributor It’s always a good day when a Lexus… Continue reading