Norton Motorcycles goes into administration

English motorcycle manufacturer Norton Motorcycles has fallen into administration following significant financial problems.

In 2008, after a long production hiatus, Norton was bought from a US owner by entrepreneur Stuart Garner, who had dreams of reviving the bespoke Norton design philosophy and taking on international competition.

Garner restarted production of Norton in a factory at Castle Donington, England.

However, bringing the 122-year-old brand back to its former glory proved to be no easy task, and Garner reportedly racked up a £300,000 ($A585,000) debt from unpaid taxes.

Accounting group BDO has been appointed as administrator to Norton Motorcycles and Norton Motorcycle Holdings, as well as two other Garner businesses.

Following the news that Norton Motorcycles had gone into administration, The Guardian reported that the story of its struggle is far more complicated than a large tax debt.

According to the report, Garner was being pursued by dozens of “ordinary working people”, just some of the hundreds of pensioners that invested their savings into Norton shares.

Allegedly, those people were persuaded to transfer their retirement funds out of conventional pension plans in 2012 and 2013, at which point their money was locked up for five years.

Garner has been accused of ignoring requests to return the money, long after the lock-in periods had ended.

Norton Motorcycles also received millions of pounds in government loans, which aided the credibility of both the brand and owner Stuart Garner.

Customers have also complained that they have placed deposits, but have no knowledge of when they will receive their motorcycles, causing significant frustration.

While Norton’s going into administration does not necessarily spell the end for the marque, it will likely cause problems for owners.

If Norton does not get back on its feet, the market value for recent models will likely depreciate heavily.

Fortunately for Australian and New Zealand customers, those that have placed deposits for new models will be able to receive a full refund, according to Norton’s Australian distributor James Mutton.

However, what will happen to those who placed orders directly with the factory remains to be seen.