GRAND RAPIDS, MI - Liquid Asset Partners is buying the assets of Skip Barber Racing School, a 40-year-old institution whose alumni includes racing drivers Michael Andretti, Danica Patrick, Juan Pablo-Montoya, Bill Elliot, Jeff Gordon and Kyle Petty.
The school, which filed for Chapter 11 bankruptcy protection in late May, will be sold to the Grand Rapids firm for $830,000 under an agreement approved by a New York bankruptcy court on Tuesday, Aug. 8.
The school was founded by race car driver Skip Barber in 1975. Barber sold the school and its name in 1999. Besides well-known racers, celebrities Al Pacino, Charlie Sheen and Jerry Seinfeld were among its students.
Based outside Atlanta, the firm operates racing schools, driving schools, racing championships, corporate events and special projects. According to TheDrive.com, the school owed more than $10 million to its creditors while claiming assets worth $5.3 million when it filed for Chapter 11.
Bill Melvin Jr., owner of Liquid Asset Partners, said he hopes to revive the Skip Barber brand name after selling off most of the school's physical assets, which includes a fleet of race cars and related equipment.
"Skip Barber Racing School has built a great track record for over 40 years as the leading race and performance driving school. We feel honored to have this opportunity and are starting to talk to different parties about options for its future," Melvin said in a statement.
The school's brand name is available for outright purchase offers or potentially for licensing to regional race schools or tracks that want to grow their race programs, Melvin said. He said he will market the brand to other racing schools and race tracks with instructional programs.
Melvin plans to stage a three-month liquidation sale starting Aug. 29. The sale will include hundreds of race cars and high-performance engines, transmissions, and components for Barber formula race cars, Mazda Miata, Porsche 911, Mustang GT, semi-trailers, trucks, fleet equipment, race equipment, memorabilia, and historical vehicles, he said.
Last year, Melvin made a splash in the motorsports world when Liquid Asset Partners acquired the assets of Erik Buell Racing (EBR), a high performance motorcycle company operating in the shadow of industry leader Harley-Davidson Motorcycle Co. in Milwaukee, Wis.
Melvin acquired EBR for $2 million last year in an auction at Walworth County Circuit Court after the company ceased operations and went into receivership in April, 2015.
This past spring, Melvin conducted an online auction to complete the liquidation of Family Christian Stores, the nation's largest retailer of Christian books and merchandise which closed all of its 240 stores in 40 states.