Onyx Motorbikes is back, one year after its owner died and left the company in shambles
A year later, Onyx Motorbikes owner, James Khatiblou He died suddenlyleaving customers with unfulfilled orders and millions in unpaid debt, the brand was revived by its original founder.
“I am thrilled to announce that I have revived my original Onyx brand with amazing supporters!” Founder Tim Seward wrote in a… Share LinkedIn on monday. “Onyx is literally back to the future now!”
The company only sells about 100 RCRs electric dirt bikes to start. It’s not clear whether these are newly produced units, or whether they are part of a batch of e-bikes made by Chinese supplier Onyx earlier this year that were kept in limbo following Khatiplo’s death.
Seward did not respond in time to TechCrunch to provide information about the company’s revival and the investors he has secured to back the company.
Seward, who has designed e-bikes for Bird and Ubco, built what would become Onyx’s first e-bike, the RCR, in 2016. After launching the company with an Indiegogo campaign two years later, the design became a hit among a cult following of customers who loved the feel of being made in the states USA, the appeal of the 80s design with the wooden frame, and the rugged capabilities of the bike.
In 2019, Seward relinquished his stake in Onyx to his friend and former colleague Khabilou, who had faltered as a first-time owner while trying to scale the company. Many of the decisions he made created a web of legal and financial problems that have yet to be resolved. Khatiblou died without a will or succession plan, a complication that brought all operations to a halt, including customer deliveries and payments to suppliers and creditors.
Oxygen Funding, an Orange County-based creditor, claimed it was owed $2.2 million. In May, Oxygen attempted to petition the Los Angeles County probate court to become administrator of Khatiplo’s estate, which would allow it to take control of Onyx’s remaining assets, and sell those assets ostensibly to repay itself.
Oxygen CEO Adam Lomax told TechCrunch on Tuesday that he had no knowledge of Onyx being revived under Seward. He also noted that Oxygen’s petition to take control of Khatibloo’s property remains in limbo, awaiting a court date that has not yet been set, and that his company has yet to be paid.
Oxygen wasn’t the only creditor fighting for a piece of Onyx. Under the 2019 Operating Agreement, Kenneth Ames, A.J Former Executive Director of Engineering and Sourcing In the LED lighting field based in Simi Valley, Troy Smith, A Self-employed accountant Based in Carlsbad, it owns a 37.5% stake in Onyx LLC. Onyx LLC is also the entity that owns the Onyx trademark, according to the trademark assignment agreement.
It is not clear whether Ames and Smith were involved in the revival of Onyx. TechCrunch reached out to Ames, Troy, and their attorneys to learn more. TechCrunch will update the article if they respond.
