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Bill Heard Chevrolet Files For Chapter 11 In Alabama Court
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Published: September 29, 2008
TAMPA - With losses reaching $5 million a month, Bill Heard Chevrolet filed for Chapter 11 bankruptcy protection early today in a federal court in Alabama.
This comes five days after the nation's largest chain of Chevrolet dealerships closed its doors at its 13 locations nationwide, including a massive site in Plant City.
Founded as a single dealership in Columbus, Ga. in 1919, 11 years after Henry Ford produced the Model T, the Bill Heard chain of dealers generated $2.5 billion in revenue at one point several years ago, according to a filing in United States Bankruptcy Court for the Northern District of Alabama.
Things turned for the worst in 2008, when the dealerships suffered monthly losses ranging from $2 million to $5 million, leading to a "liquidity crisis." Now, it cites debts of $500 million to $1 billion on a standard bankruptcy form.
The largest creditor is the Frost National Bank of San Antonio, owed more than $1 million. Others include the state of Florida, owed $216, 346, as well as several billboard and radio companies.
In another filing, the company said it owed employees $816,000.
Customers' Rights
Customers do have rights in car dealership bankruptcy cases if they are owed deposits or other money when car dealers close their doors. They get "priority" payment, before other creditors, including back taxes owed to the government. The catch is customers need to hire a lawyer and present their case at the bankruptcy court. The good news is those claims typically run smoothly.
Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins@tampatrib.com.
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