Classic Recreations files for bankruptcy

Texas-based car restorer Classic Recreations, known all over the world for its ridiculously expensive and high-end Ford Mustang restomods, has officially filed for Chapter 11 bankruptcy.

The company had apparently accumulated between 1 and 10 million USD in debts and was unable to proceed with the settlement. Its assets are being evaluated at between 500,000 and 1,000,000 USD, so even auctioning these off won’t let it stay afloat.

Formerly a renowned and reputable restorer of Ford and Shelby vehicles, Classic Recreations has now lost the license to the Shelby brand, further signaling about its impending demise. Just what actually happened for the situation to aggravate like that is a mystery at this time. Back in the pandemic years, many restomodders had reported huge profit spikes owing to increased demand. It’s odd to see CR flounder shortly after these lucrative years.

It also remains up in the air whether the company plans to finish its ongoing projects and when. In the best-case scenario, it may undergo a restructuring and get back to business as usual after a few months. We have no official comment to back this up, however.