COSTA MESA, Calif. (BRAIN) — Electric Bicycle Co., which assembled and painted custom e-bikes at its California facility, filed for Chapter 7 bankruptcy liquidation last week, listing total liabilities of $6.1 million, including secured claims of $960,000, and assets of $953,000.South African-born Sean Lupton-Smith, following a career as a restaurateur, founded EBC about 14 years ago.He told BRAIN on Wednesday that U.S. tariffs on imported components contributed to the failure.
This is horrible and it is happening to hundreds of thousands of small businesses right now. Big business can absorb tariffs. Mom and pop places, small manufacturers, importers, tradesmen, local restaurants, etc. can’t absorb them.
You can’t always raise your price if the market won’t bear it. It not only forces all these small business ventures to fold it also creates an atmosphere were people are less likely start new businesses.