The Boardtracker Harley-Davidson dealership in Janesville closed its doors indefinitely on Saturday.
Court documents show the owners are in the process of trying to sell the dealership amid a federal lawsuit against them by their creditor, Harley-Davidson Credit Corporation.
Attorney Alon Stein filed a response in opposition to a motion in court late Friday, which outlined the plans for the dealerships owned by plaintiffs Sara and Eric Pomeroy.
“The only reason for why the Janesville dealership has not been sold yet is because Harley Davidson Motor Company is withholding consent of the transfer, apparently based on a policy capping the number of stores a dealer can own,” Stein wrote. “This potential buyer is a dealer who owns several dealerships in Illinois and Wisconsin.”
According to the document, the Pomeroys agreed to sell their Irontown Harley-Davidson dealership in New Berlin, Wisconsin to Robert Moakley, who owns Wisconsin Harley-Davidson based out of Oconomowoc.
Harley-Davidson Credit Corporation is suing the parent holding companies of the dealerships for $6.29 million, accusing them of breach of contract and fraud.
The court filing indicates that these developments could lead to the end of the lawsuit.
“With the potential New Berlin sale already in process, a sale of the Janesville dealership would lead to HDCC being paid in full, likely resolving this suit,” Stein wrote.
The Pomeroys purchased the former Kutter Harley-Davidson dealership in Janesville back in May of 2015