According to the Austrian business magazine Profil, KTM AG has 100,000 unsold motorcycles, with a value of €1.4 billion sitting in warehouses and on dealer floors.
It seems unlikely that KTM will go out of business entirely. They have a very strong product line up and a very strong brand identity, across all of their brands (KTM, Husqvarna, GASGAS, and MV Agusta). They sold 382,000 units last year, a sign that there is a solid market among consumers for their bikes.