Largest Chevrolet seller Bill Heard closes its doors
“Mr. Big Volume” is now “Mr. Big Trouble”. Slow sales and the credit crackdown has forced Bill Heard Enterprises to file for bankruptcy and shut its doors. Those who live in Alabama, Arizona, Florida, Georgia, Nevada, Tennessee and Texas, usually know the company for its large scale offering of Chevrolet products – in fact the dealerships made up the largest combined seller of Chevys.
The closure of the remaining 13-dealership chain may have been foreseen not only because of the economy, but it also seems that Bill Heard Enterprises had already been in credit troubles. In an investigation that has been going on since 2003, the Georgia Governor’s Office of Consumer Affairs has been seeking more than $50 million in penalties for deceptive marketing and alleged signature forgery. This investigation, combined with concerns over losses, caused GMAC Financial Services to discontinue credit for new inventory last month. What that meant is that Heard’s largest supplier of cars was no longer willing to financially back the dealerships.
Because this is a Chapter 11 bankruptcy (debt reorganization), and not a Chapter 7 (total asset liquidation), this may mean that Bill Heard Enterprises might try to reopen its doors at some point. But that is still a long road ahead. The company cited that the combination of rising fuel prices, a slowdown in car sales and problems in the banking sector were the reasons for the closure – none of which will likely be solved soon. (UPDATE: Bill Heard Enterprises and GMAC are negotiating the liquidation of the company’s assets.)
Source: Automotive News