Electric equipment manufacturer and distributor Cratos Equipment ceased operations on October 30, citing difficulties from recent changes in trade policy, tariffs, financing conditions and global market dynamics. Its closure follows a legal dispute with former partner Sherpa Miniloaders.
Cratos Equipment, formerly Triple E Equipment, began operations in 2013 as the exclusive dealer for Netherlands-based Sherpa Miniloaders and attachments in the U.S. It later evolved to offer its own line of wheeled and tracked electric mini skid steers, material buggies and material movers.
Following years of declining Miniloader sales and failure to meet minimum machine targets, Sherpa added Brokk as a U.S. distributor of its products in 2024. Cratos filed a lawsuit against Sherpa in 2025, including a $4.4 million damages claim, over the exclusive rights to the U.S. distribution agreement. The Dutch court ultimately ruled in favor of Sherpa on February 25, citing Cratos failure to meet the purchasing requirement and refusal to mitigate damages by ordering through Brokk.
While the legal battle may have contributed to Cratos’ closure, it was not explicitly cited as a reason for the shutdown in a November 2 open letter posted to LinkedIn by company founder and CEO Alex Berg.
Powered byIn the letter, Berg states: “Over the years, Cratos grew from a single F-150 pickup truck into a company that helped pioneer the adoption of electric construction equipment across North America.
"Of course, building a business around innovative equipment has never been without challenges. The economic and international trade environments of recent years have brought increasing complexity to businesses that depend on manufacturing relationships overseas. Changes in trade policy, tariffs, financing conditions, and global market dynamics have created challenges that extend far beyond any one company.
"While those realities have contributed to the difficult decisions that bring this chapter to a close, they do not diminish what Cratos accomplished or the impact we made.”
Behind the Dissolution of the Cratos-Sherpa Distribution Agreement
Here is a closer look at the history of the distribution agreement between Cratos and Sherpa, based on a February 25 ruling from the Amsterdam District Court:
2013: Cratos was named the exclusive dealer for various Sherpa 100 Miniloaders in the U.S.
2017: Sherpa and Cratos entered into a new agreement granting Cratos distribution exclusivity, subject to the condition that it met a minimum annual target of 50 machines sold.
2022: The agreement between Cratos and Sherpa began to erode in 2022, when, according to court documents, the number of Miniloaders that Cratos sold in the U.S. “declined sharply.” Around the same time, Cratos designed its own compact utility loader, which, according to Sherpa, was largely based on the design of its mini loaders.
2023: Sherpa did not consider “conditions in the American market and a change in Cratos’ sales strategy” as a sufficient explanation for the decline in sales and suggested amendments to the distribution agreement, including 100% payment in advance.
2024: Sherpa proposed that due to the lower sales volume, a reseller or OEM agreement made more sense than a distribution contract. Cratos made a counterproposal to which Sherpa responded, stating it had “decided to explore cooperation with multiple partners after the contract has ended.”
Sherpa named electric, remote-controlled demolition robot manufacturer Brokk as a distributor of its Sherpa Z10 and Z20 compact utility loaders. Cratos objected, stating that it still held the exclusive rights to distribute Sherpa’s Miniloaders in the U.S., and ordered Brokk not to approach any customers of Cratos or advertise Sherpa products.
January 2025: Cratos argued that the agreement was still in effect because it was not validly terminated. On January 23, 2025, Sherpa terminated the agreement with immediate effect, citing sufficient ground for termination back to August 2024. Sherpa directed any future orders of equipment or spare parts to be coordinated through Brokk.
October 2025: Cratos initiated legal proceedings against Sherpa in the U.S. for wrongfully ending its distribution rights, as well as damages suffered because of breaches of the agreement, totaling $4.4 million. Sherpa argued that Cratos had not met the agreed-upon 50 machine sales target since 2023.
January 2026: The Dutch court deemed that Cratos presented enough evidence to temporarily freeze Sherpa’s bank accounts for attachments totaling 1.25 million euros, including interest and legal costs, should Cratos eventually win the case.
February 2026: Sherpa asked the judge to remove the attachments, stating that there was not enough evidence and that the amount of liability was not supported by past order history. In a decision issued February 25, the judge sided with Sherpa, finding several issues with Cratos’ position, including:
- Cratos has not met the condition for exclusivity since 2023, implying that Sherpa could designate Brokk as a distributor.
- Sherpa did not refuse to sell products to Cratos, rather it required orders to be fulfilled through Brokk. Cratos could have mitigated sales, parts and service damages by placing its order with Brokk.
- The existing distribution agreement between Cratos and Sherpa was likely terminated in August 2024, given that Cratos did not expressly protest against the explanation for moving to multiple distributors.
Cratos was required to pay Sherpa’s legal costs, including post judgement costs, totaling €2,227. If Cratos seeks to bring another claim or attachment against Sherpa in the future, it must disclose this decision with any new requests or face a penalty of €100,000.
