Vectrix closes shop on electric motorcycles

Middletown, R.I.-based Vectrix (AIM:VRX) is preparing to file for bankruptcy after disappointing sales of its high-performance electric motorcycles.

The startup said it has laid off all but essential staff as it pursues options, including sale of the company and financing, according to a release to investors last week. If unsuccessful at those efforts, the company plans to file for bankruptcy within three weeks.

The release from Vectrix blames the credit crunch and lack of consumer spending on bigger ticket retail purchases.

"The company has made every effort to reduce costs and conserve cash, but market conditions continue to be difficult and the results of sales have been very disappointing," the release said.

The company makes electric scooters with a top speed of 62 miles per hour and a maximum range of 68 miles on a charge of the nickel-metal hydride battery packs (see Vectrix selling souped-up scooters in U.S.). In addition to its headquarters in Rhode Island, the company has a vehicle assembly facility in Wroclaw, Poland, and an R&D center in New Bedford, Mass.

In April, the company laid off 60 employees and restructured its Polish subsidiary as it began exploring a merger or sale of the company. Trading of the company's stock was suspended March 31 because the company said it could not publish its report for the year ending Sept. 30, 2008, until it raised more funds.

Vectrix listed on the London Stock Exchange's Alternative Investment Market in May 2007. Vectrix was founded in 1996 and recorded an undisclosed amount of funding from manufacturer Parker Hannifin (NYSE:PH) in November 2004.