Investment firm spins wheels in bid to acquire NHRA: failed offer for hot rod association is blamed on bad economy.

A Santa Monica investment firm's plans to buy the National Hot Rod Association have crashed and burned. liD Partners Acquisition Corp.'s share-holders voted against the acquisition of Glendora-based NHRA's professional racing assets, including the Powerade Drag Racing Series.

The proposal didn't receive the necessary number of votes for completion of the transaction, HD Partners announced Jan. 31.

The investment company planned to take the NHRA public, but it now plans to liquidate and dissolve, pursuant to its charter. It will seek a shareholder vote on approving the dissolution.

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HD Partners executives blame a weakening economy for the failed acquisition attempt.

"Unfortunately, in the time since we first announced this transaction in May of 2007, we have witnessed a dramatic shift in both the financial markets and the perceived strength of the U.S. economy, which we believe adversely impacted the final outcome of this transaction," Eddy Hartenstein, chairman of HD Partners, said in a statement.

HD Partners was formed in 2005 to pursue mergers, capital stock exchanges, asset acquisitions or other comparable business combinations in the media, entertainment or telecommunications industries.

The National Hot Rod Association was founded in 1951 by Wally Parks. It has grown to include 80,000 members and more than 35,000 licensed competitors. There are 140 member tracks across North America that schedule NHRA competitions in seven geographic regions.

Its marquee Powerade series makes 23 stops in 21 cities over the course of nine months. The company also offers weekly grassroots programs at many of its member tracks. One of the most popular is the NHRA Street Legal Drags presented by the Automobile Association of America, which offers the opportunity to compete in drag racing.

The National Hot Rod Association will continue to operate as a non-profit entity.