TBO.com - TBO is Tampa Bay Online

Ernie Haire Ford name dimming as dealership set for sale

ADVERTISEMENT

By RICHARD MULLINS | The Tampa Tribune

Published: July 17, 2009

TAMPA - The days of Ernie Haire Ford as an independent car dealership are now numbered. A federal bankruptcy court in Tampa has ordered the company and its related properties sold at auction – and picked a preferred buyer.

The Elder Automotive Group, a major Jaguar and Aston Martin dealership in Tampa, was picked as the preferred buyer by the court.

The final sale price was not set. Rather the court established an auction for August 17 at the courthouse. Depending on final appraisals, inventory levels and bidding procedures, the purchase could go through for between $6 million and $8 million, said Robert Elder, president of Elder Automotive Group, which is based in Detroit, and has several dealerships in the area.

"We feel very good about the deal," he said. "I grew up in the business, and now is a good time to get some great deals buying properties like this."

Elder will purchase the dealership rights, lease several properties, Elder said, and rename the organization, likely to "Ford of Tampa."

For now, the inventory on the lot is "dwindling," he said, as the dealership sells off remaining cars and does not bring on more. In the first week after the transaction, Elder said he plans to renovate several buildings and prepare to fill the lot back up through October.

Other bidders can jump into the auction, the court said, with some conditions. For now, it's scheduled for 9:30 a.m. August 17 at the courthouse on Florida Avenue, and Elder said several other dealerships have already expressed some interest in competing with his pre-arranged purchase. Any prevailing bidder besides Elder would have to pay a "break up" fee of $150,000 to Elder to complete an alternate deal.

Ernie Haire has about 175 employees. Its principal office is at 9545 N. Florida Ave. in Tampa. A bankruptcy filing in November last year included other Ernie Haire companies, such as Big Dog Motorcycles of Tampa, Ernie Haire Used Car Auto Mall, Ernie Haire Used Car Supercenter of Tampa, and a local Quick Lane Tire & Auto Center.

Elder said his deal will only include car dealerships and related properties, not motorcycles.

The deal will free the Haire organization from costs such as employee bonuses, severance pay or other debts, though Elder said he hopes to bring on as many current employees as possible.

Reporter Richard Mullins can be reached at (813) 259-7919.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT