Enstrom Helicopter Corp. / R.J.Enstrom Corp.
Enstrom was acquired by Chinese firm Chongqing General Aviation Industry Group (CGAG) in December 2012. CGAG offers a bundle of other products and services, including emergency rescue, aerial forest fire protection, agricultural spray application, aerial photography, and a host of others through its subsidiaries.
The new owner tried to turn the storied brand around by investing up to $8 million to upgrade Enstrom’s factory. They nearly doubled the space, expanding it to a 160,000-square-foot FAA-approved manufacturing facility. The company also hired more than 200 new employees.
The company showed signs of tenacity when it celebrated its 60th anniversary in 2019.
In 2019, the company ranked third in sales of piston helicopters, with 38 sold between 2018 and 2019, but the overall rotorcraft market was in the midst of a slump. The 2019 annual report from General Aviation Manufacturers Association (GAMA) that tracks aircraft deliveries showed that 2019 was the slowest year for rotorcraft sales in the preceding seven years.
Then the pandemic hit.
GAMA’s data showed that from 2019 to 2020, the overall piston helicopter market sales and deliveries decreased by 20.7 percent.
![]() After nearly 65 years in business, Enstrom Helicopter Corp. closed its factory doors on 21 January 2021 after declaring Chapter 7 bankruptcy.
Despite building more than 1,300 helicopters that were sold to customers in more than 50 countries, the Michigan-based company announced that “several financial difficulties,” some related to the pandemic, compelled its owners to close the company.
Dennis Martin, Enstrom’s director of sales, shared the news in a letter to its suppliers and dealers in which he confirmed “all existing contracts and agreements [with the company] will become null and void.”
All employees, about 30 in total, lost their jobs.
Enstrom’s final delivery—a pair of 280FX aircraft—was to the Peruvian Air Force in December 2021. Meanwhile, Enstrom ceased its parts and overhaul supply services on January 7, before ending its technical support on January 19.
They have already fielded multiple requests from interested parties who would like to buy the company’s assets out of bankruptcy, and maybe invest in revamping the company.
In a Chapter 7 bankruptcy, the assets of a company are usually liquidated and the proceeds are used to pay off outstanding debt to creditors.
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