Erik Buell Racing LLC in East Troy to shut down; 126 workers will be out of a job

EAST TROY (WITI) -- Erik Buell Racing LLC, located in East Troy is set to close, and 126 workers will be out of a job.

The company had more than $20 million in outstanding liabilities and was no longer able to pay its ongoing expenses, said Tim Nixon, an attorney at Godfrey & Kahn SC, who represents the company. The company's assets are yet to be determined, he said.

Erik Buell founded the business in November 2009, after Harley-Davidson Inc. decided to drop the brand from its line. He delivered the discouraging news to 126 employees at the East Troy plant during the lunch hour.

The Department of Workforce Development says it received a Wisconsin Business Closing and Mass Layoff (WARN) notice regarding Erik Buell Racing LLC on Wednesday, April 15th.

The Department of Workforce Development will coordinate Rapid Response services with Southeast Workforce Development Board.

The Wisconsin Department of Workforce Development (DWD) Dislocated Worker Program provides assistance to workers, companies, and communities affected by mass layoffs or business closings.

Under state law, employers employing 50 or more individuals in the state may be required to give 60 days notice before a mass layoff or closing. Once the state becomes aware of any event affecting 50 or more workers, the Dislocated Worker Program's Rapid Response Team reach out and offer assistance to the affected workers and employer.

DWD Rapid Response staff will:

Affected workers have access to numerous services to help them become re-employed. Basic services, most of which are available to anyone at no charge through the state's Job Centers, include:

More intensive and retraining services can become available for some workers under one or more DWD Workforce development programs. These intensive services can include:

DWD will also look at each dislocation to determine if the workers have lost their jobs as a result of foreign trade or competition. If that is the case, workers may be eligible for additional assistance for federal Trade Adjustment Assistance (TAA). Services available under TAA include training, income support while in training, job search allowance and relocation allowance.

Wisconsin spends nearly $40 million annually serving approximately 20,000 dislocated workers in various programs. Wisconsin consistently ranks highly among states in receipt of discretionary federal funding for dislocated workers.