Chrysler’s Napa Auto Dealership Files Chapter 11 Bankruptcy

by San Antonio Attorney

The Napa branch of Chrysler’s auto dealership recently filed for Chapter 11 bankruptcy protection in the U.S.  Bankruptcy Court in Santa Rosa last Thursday.

The Napa dealership also sells other vehicles such as Dodge, Jeep and Ram vehicles.

The company has declared assets and liabilities worth $1 million-$10 million.

Joe Peatman, representative of Gasser Foundation, stated that the dealership already had problems at par with other owners.  But they have been bouncing back.

Gasser Foundation owns the lot that the dealerships leases, located at 333 Soscol Avenue.

Napa Chrysler owes substantial amount of money to several government and federal offices such as the State Board of Equalization ($320,000), Comcast office ($120,000), and the IRS ($97,000).

According to court papers filed, the company has 74 creditors, such as Big O Tires, Napa Tire, Napa Water Department, Exertec Fitness Center, Gasser Foundation, Napa Valley Towing, Napa Recycling and Waste Services, and New Life Auto Salon.

Charissa Welch, the director of operations at New Life Auto Salon, expressed her sympathy over Napa Chrysler’s fate.

Welch added that the amount Napa Chrysler owed her is only $600 due to work done about a year ago.  However, no matter how small the amount owed and how Welch can sympathize, money is still money.

Napa Chrysler owes Gasser Foundation approximately $24,000, a little higher than the dealership pay for the six acres of lease and the existing buildings on the property.

Peatman also stated that they will be consulting a bankruptcy firm to explore other options in paying debt.

A representative of Chrsyler stated that they decided to drop the franchise by the end of 2013 due to poor performance and lack of market penetration.  There is still 17 years left for Gasser foundation and the dealership intends to be around at that time as well.

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