US kit aircraft manufacturer Sonex announced last week it would close its doors as a result of a "perfect storm" of financial pressures.
CEO Mark Schaible made the announcement on 27 March via an emotional video, outlining the reasons why the company could not continue to operate.
"Sonex is closing its doors, effective immediately," Schaible said. "This decision is necessitated by a severe drop-off in sales and our bank's unwillingness to carry forward our debts, given some unprofitable years.
"We've had to make this decision very suddenly as a perfect storm of bank pressure, lack of sales, increasing costs, competition from our own aircraft on the used market and cash-flow realities are not allowing us to continue our work.
"We have all fought tooth-and-nail to make Sonex successful."
Schaible has been with Sonex since 2003 and bought the company outright in 2022. He and his wife will also file for personal bankruptcy alongside the business bankruptcy.
Sonex, based in Oshkosh, Wisconsin, has produced several aircraft kits including the Sonerai and Sonex low-wing singles, the SubSonex jet and in 2021 announced a new high-wing kit.
Schaible said the company bankruptcy was likely to prevent delivery of ordered kits to customers, but they were talking with suppliers and searching for a benefactor who may be prepared to support the company in the short term.
However, Schaible made it clear that Sonex was unlikely to be able to deliver.
"Barring an 11th-hour purchase or investment allowing the operation to continue, this will not be a re-organisation of the debts, but will be much more severe," he said.
"I know that many of you will be angry. You'll be losing money, and will find this announcement difficult to accept or understand."
It has been reported that Sonex has sold around 1600 kits since it started operations, of which around half are thought to have been completed and in the air.
Australia has around 30 Sonex aircraft currently on the civil register, but several more could be in various stages of construction.
- Steve Hitchen