One year after the unexpected passing of Onyx Motorbikes owner James Khatiblou, which left many customers with unfulfilled orders and caused significant financial distress, the brand has been revitalised by its original founder.
“I am thrilled to announce that I have revived my original brand, Onyx, with remarkable support from investors!” stated founder Tim Seward in a LinkedIn post on Monday. “Onyx is making a comeback like never before!”
Initially, the company plans to sell approximately 100 RCRs electric dirt bikes. It remains uncertain whether these are newly manufactured units or part of a prior batch produced earlier this year by Onyx’s Chinese supplier that was left in limbo following Khatiblou’s death.
Seward has not yet responded to inquiries from StartupSuperb regarding the details of the company’s revival and the investors who are backing this initiative.
Having previously designed e-bikes for Bird and Ubco, Seward created the first Onyx e-bike—the RCR—in 2016. The company formally launched via an Indiegogo campaign two years later, where the RCR quickly gained a devoted following due to its American craftsmanship, nostalgic 1980s design featuring a wooden body, and impressive performance capabilities.
In 2019, Seward transferred his ownership stake in Onyx to Khatiblou, who encountered challenges as a first-time owner while attempting to expand the business. Many of his decisions led to a complex web of legal and financial issues that persist today. Khatiblou passed away without a will or succession plan, causing a complete halt to company operations, including customer deliveries and payments to suppliers and creditors.
Oxygen Funding, a creditor based in Orange County, has asserted that it is owed $2.2 million. In May, Oxygen initiated a petition in the Los Angeles County probate court to become the administrator of Khatiblou’s estate, seeking control over Onyx’s remaining assets, which would potentially enable selling these assets to recover their debt.
On Tuesday, Oxygen CEO Adam Lomax informed StartupSuperb that he was unaware of Onyx’s revival under Seward. He also mentioned that Oxygen’s petition to manage Khatiblou’s estate is still pending, awaiting a court date that has yet to be assigned, while their debt remains unpaid.
Oxygen is not the only creditor aiming to claim a stake in Onyx. According to a 2019 operating agreement, Kenneth Ames, a former engineering and sourcing executive from Simi Valley, and Troy Smith, a self-employed accountant from Carlsbad, each hold a 37.5% interest in Onyx LLC. This entity is responsible for Onyx’s branding, as detailed in a trademark assignment agreement.