Champion Porsche Chapter 11

[imcarthur]

But it's seems a bit strange. More like an inventory write-off.

"Pompano Beach-based Champion Motors has filed for Chapter 11 bankruptcy protection.

The bankruptcy only affects the Porshe and Audi car dealership division of the company, which has two locations in Pompano Beach. It represents one of the largest Porsche dealerships in the world. The bankruptcy does not affect two related companies – the well-known Champion Racing sponsorship company and Champion Motorsports, which makes high-performance wheels.

In a filing Thursday with the U.S. Bankruptcy Court for the Southern District of Florida, Champion Motors said it has between $10 million and $50 million in debt and a similar range for assets."


"General Manager Michael A. Sciple signed the filing. A list of equity security holders filed with the petition said Devindar Maraj owns 100 percent of stock.

Volkswagen Credit’s claim is not listed in the bankruptcy filings yet; its loans are secured by cars and property, Houston said.

A list of unsecured creditors said the largest unsecured claim is Porsche Cars North America of Atlanta, with a claim of $153,608. Other creditors include South Dade Automotive of Miami, with a claim of $15,990, and Auto Salon 2000, with a claim of $7,800."

Ian

[imcarthur]

I forgot . . . Source South Florida Business Journal

Ian

[the]

Wow.

I'm not sure what you mean by an "inventory writeoff."

A lot of dealerships are getting hurt right now. The article doesn't really make clear what the problem is, but a lot of dealerships have expanded too much and are too leveraged because of it. So sales slowed, but they still had huge payments every month.

Another big thing for a lot of dealers is their flooring lines have been pulled or cut back quite a bit by their lenders, particularly their used car flooring financing. With no credit available, they are forced to file Bk.