CARLISLE, England — Motorsport tire supplier Technology Sinon U.K. Ltd. — d.b.a. DMack Global Ltd. — has filed for bankruptcy protection, according to an administrator statement lodged by insolvency consultants Leonard Curtis.
In the filing, Leonard Curtis said Technology Sinon had been unable to pay its debts and was declared insolvent at the end of April.
DMack has been active in motorsport — rally competition, primarily — since 2011, supplying tires in partnership with China's Shandong Yongtai Chemical Group, in Dongyng, which went into administration last August.
From 2011 to 2017, Carlisle-based DMack was one of the two authorized tire suppliers for the FIA World Rally Championship.
In 2014, DMack was the victim of fraudulent activity in China, the administrator said, noting that the subsequent legal case had "a significant impact" on the business — including stock shortages, cancelled orders, large discounts and high legal costs.
DMack announced in April 2016 that it was moving production to England via an off-take agreement with Cooper Tire & Rubber Co., which since then has disclosed plans to discontinue passenger tire production at its plant in Melksham, England.
"Exceptional costs of moving production to the U.K., along with limited production caused the company to be loss making from 2016," the statement added.
Prior to that, DMack announced it was considering building its own plant in the U.K. in a bid to up its game in the World Rally Championship (WRC), according to a senior official of the firm at that time.
The name DMack is derived from the business' owner, Dick Cormack, an entrepreneur who started the company in 2010 as an alternative to tire majors Group Michelin and Pirelli Tyre S.p.A.
The overall impact of the legal battle and the company's losses are estimated at £13 million, including a £600,000 debt to Cooper Tire.
According to Leonard Curtis, attempts to sell the business and its assets did not bear fruit, as three interested parties did not make a offer after receiving sale packs in early spring.
DMack's Italian subsidiary DMack S.r.l. has acted as "qualifying floating charge holder" during the process.
DMack disclosed last year it was considering moving production to Marangoni S.p.A.'s manufacturing site in Rovereto, Italy.
In a written statement to European Rubber Journal, Marangoni has confirmed that talks between the two companies are still ongoing. ERJ is in contact with DMack and Marangoni for further comment on these developments.
DMack has a U.S. sales company, DMack Tyres USA, in Portland, Ore.