Widescape, a Quebec-based innovator in stand-up snowmobiles, has been acquired by the American firm Arctic Cat after financial struggles. This acquisition marks a significant transition for Widescape, which was introduced to the market three years ago.
Background on Widescape and Its Product
The Widescape WS250 snowmobile combines elements of traditional snowmobiles, motocross bikes, and mountain bikes. Launched in February 2022, this unique vehicle features a single front ski and is designed for recreational use.
Despite initial interest from North American retailers, Widescape faced significant challenges. By December 17, 2022, the company had accumulated debts of approximately $13 million, including $3.4 million owed to Investissement Québec, the provincial government’s investment arm.
Financial Challenges
- Low sales volume of the WS250 contributed to excess stock.
- Increased production costs negatively impacted profitability.
- Unfavorable winter conditions further reduced sales opportunities.
Widescape attempted to secure partnerships and investments for a prolonged period, but these efforts were unsuccessful. As documented by PwC, the firm’s appointed trustee, about 15 companies and over 20 potential investors were approached without yielding results.
Acquisition by Arctic Cat
Arctic Cat emerged as the sole bidder for Widescape. The financial details of the acquisition have not been publicly disclosed. However, it is noted that the buying firm plans to continue marketing the WS250 and maintain relationships with Widescape’s existing suppliers.
Widescape WS250 Features
- Weight: The WS250 is designed to be lighter than traditional snowmobiles.
- Width: It offers a narrower profile, enhancing maneuverability.
- Engine: The vehicle is powered by an electronic fuel-injected four-stroke engine.
Arctic Cat, headquartered in Minnesota, is a major player in the snowmobile manufacturing industry. Previously part of the Textron conglomerate, the company has a history of innovation in power sports vehicles.
The purchase of Widescape may provide new opportunities for the WS250, expanding its market presence while addressing the challenges that led to Widescape’s insolvency.
