NEW YORK (CNN/Money) -
Indian Motorcycle has decided to shut its doors -- again.
After returning in 1999 from a 50-year absence, Indian Motorcycle Corp. said Monday it could not keep its production running, telling its employees that easing production is the only way to keep the company from going under.
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"These steps were taken in order to allow the board time to explore other options that would permit the company to continue as a going concern," Chairman Frank J. O'Connell said.
"The company is operating with a small group of management in place and will continue to do so until a decision is made concerning Indian's future," he added.
Indian Motorcycle told its 380 employees last week that a deal with a new investor had fallen through, Vice President Fran O'Hagan told the San Jose Mercury News, and the company may end up in bankruptcy court despite being on target to sell 4,500 bikes this year.
Once known as "the pride of the American road," the Indian is an icon among cycling zealots. From 1901 to 1953, the original Indian Motorcycle produced what many call the most elegant motorcycle ever to ride the highways. Indian fans are legion and can be found almost everywhere around the world.
Prior to WW I, Indian was the largest motorcycle company in the world, producing more than 20,000 bikes a year. Rivals of Harley-Davidson (HDI: down $0.43 to $47.97, Research, Estimates), Indian motorcycles were the first to feature all-chain drive, hand-grip acceleration and electric starting.
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