Copyright 2002, Roadracing World Publishing, Inc.

Active Leisure, Inc., the parent company of Competition Accessories, has gone out of business and left unsecured creditors holding the bag.

The company sent out a letter dated April 26 and addressed “To Our Vendors” which read, “We regret to inform you that, after careful consideration, the Board of Directors of Active Leisure has determined that it no longer has the financial ability to continue its operations. Accordingly, we have authorized the Company to surrender its assets to one of our secured lenders. The secured lender is not assuming any of the liabilities of Active Leisure. However, it is our understanding that the secured lender intends to maintain operations, through a new operating company, of Competition Accessories and the other catalog and Internet operations in Springfield for a period of time while it seeks a purchaser for the business. It is the hope of the secured lender, and the management of Active Leisure, that the business can be sold as a going concern.

“Management of Active Leisure has attempted for many months to work out a financial restructuring which would allow it to continue its operations without interruption. However, it has become clear that continued operations for Active Leisure is not possible. It is with deep regret that we must advise you that it is uncertain but unlikely that there will be proceeds available from the sale of the business sufficient to pay both the secured creditors and the total unsecured debt. We appreciate the loyalty and support our vendors have shown Active Leisure and wish that we had been in the position to repay that support more appropriately.

“The new operating company for the period while the Company is being marketed for secured party sale will be COMPACC, LLC. If you have questions about your claim, you may contact Linda Berger, the new controller at COMPACC, LLC (937-323-1594) who is coordinating creditor questions and claims reconciliation.

“Very truly yours,
“William C. Davis, Secretary”

The company spent serious money running an AMA Superbike and Formula USA racing program with rider Larry Pegram in 2000 and 2001. Rumors of financial problems swirled around the program almost from its inception.