Harley-Davidson Inc. (HOG) dealerships that serve as retailers, repair shops and de facto clubhouses to legions of loyal owners are falling victim to the company's mounting financial pressures.

At least a half-dozen have closed in recent months, hit by sinking sales as cash-strapped Americans forgo luxury purchases.

Dealers worry the shutdowns will begin to chip away at one of Harley's most prized assets: its loyal customer base.

"Harley depends on a distribution network of its dealers to make sure consumers have place to call home, a place to get bike serviced," said Mike James, whose Santa Cruz, Calif., Harley shop went out of business late last year.

"For Harley, losing dealers will be devastating."

Milwaukee-based Harley has been hit hard by the economic slump that's cooled demand for motorcycles and other luxury goods. The extent of Harley's sales slide and financial challenges will become clearer Friday when the company releases its fourth-quarter financial results.

Demand for the company's iconic bikes, popular among aging baby boomers with money to spare, is quickly falling victim to Americans' slashing of unnecessary expenses. The company's share price has lost nearly 70% of its value in the last year. Earlier this month, the head of its Harley-Davidson Financial Services lending arm abruptly left the company, creating more uncertainty in tough times.

One industry analyst is predicting 2009 will deliver Harley a 30% decline in sales, its largest drop since the 1970s.

"The reversal of the equity and real estate markets, coupled with tougher credit access, has hampered consumers' ability to spend beyond their means," Goldman Sachs analyst Patrick Archambault wrote. "We think the wealth-induced days of 'trading up' are largely behind us."

Meantime, Harley dealers are anxiously trying to ride out the rough economy.

Dealer James is frustrated Harley hasn't done more to spur sales through incentives from the company. And, like many other dealers, he invested big to upgrade to an elaborate, capital-intensive dealership, encouraged to do so by the company. "When the market contracts and you contract your business, you still have overhead, too much debt and not enough working capital," James said.

He attempted to sell his store to two other owners, but the deals ultimately fell through.

Other stores have closed in cities such as Caldwell, Idaho; Roseburg, Ore.; and Kansas City, Mo.

"We feel the economy now," said Marilyn Fox, owner of a dealership just outside of Kansas City that closed earlier this month. Fox and her family opted to combine that store, which wasn't a full-line retailer, with a larger store nearby.

The closings, though still isolated, are being felt through the Harley community.

"It's not something that Harley-Davidson dealers have experienced since the 1980s, but it's starting to happen across the U.S. - foreclosure and going out of business sales," one motorcycle enthusiast wrote on the Northwest Harley Blog site.

Another Harley blog asked riders to post information about which stores have closed. Harley owners often tour stores around the country and were arriving to find some locations closed. Readers quickly responded with a handful of new closings.

"We may be one of the first," James said recently. "We certainly won't be the last."

-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com

(Steve Wisnefski contributed to this article.)

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.