Bill Heard Chevrolet files Chapter 11, owes $229 million
Bill Heard Chevrolet, which had been the largest Chevy dealer in the world by volume, filed for Chapter 11 bankruptcy protection this week after closing down all of its 13 stores last week, and the tale of financial ruin is surprisingly bad. The dealer conglomerate owes $229 million to GMAC financing, BMW financing, and JP Morgan Chase, but with the Chapter 11 filing, much of the money owed will likely never see the light of day.
Bill Heard Chevrolet was the self-proclaimed "Mr. Big Volume" car shopping superstore that pushed Motown metal out its showroom doors even for customers with bad credit. The Georgia-based dealer seems to have had as many enemies as it had vehicle sales, and the state of Georgia just last month accused it of misleading business practices and forging signatures. The over 2,000 employees at the 14 dealerships are also considering a class action wrongful termination lawsuit that stems from the abrupt conclusion of their employment. Bill Heard Chevrolet was losing between $2 and $5 million dollars per month since mid-2007, and with woeful sales across the U.S., we're guessing it won't be the last dealership conglomerate to end abruptly. Thanks for the tip, Rahim!
[Source: Forbes]
Reader Comments (Page 1 of 3)
TMC 6:36PM (10/01/2008)
229 million?!
Holy crap!
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TMC 6:36PM (10/01/2008)
229 Million!?!?!
Holy crap!!!!!!
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Ben 10:34PM (10/01/2008)
You can say that again!
innoc3nt 10:10PM (10/08/2008)
WOW. I never knew a dealership could be worth so much, or be so deeply in debt. I'm still absolutely amazed.
fixitfixitstop 6:44PM (10/01/2008)
The dealer franchise system is about half of the American car business problem in itself. The stores should be owned by the manufacturers and have limited inventory. You might have to wait for your car, but get over it. Inventory is a ticking timebomb. Instant gratification on high-ticket items like cars isn't healthy.
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DKB_SATX 7:36PM (10/01/2008)
This could actually be a bonus for enthusiasts... if you can ORDER the car you want rather than having dealers prefer to push whatever's sitting around or making you wait months for just the right car it would be worth not being able to browse aimlessly though dozens of cars and trucks for one that's "close." It might even cause people to PLAN car purchases rather than to go out "just to look" and get sold a car by Slick Sam.
refugee7 8:42PM (10/01/2008)
Yea, kinda like online shopping for a vehicle. Unfortunately it's more like a house, people want to see what they are buying beforehand. Even if there is only a slight variation, demos don't cut it when you get a new car.
StinkyPete 6:46PM (10/01/2008)
What? No bailout for Bill? He ran his business like some of the mortgage companies... what gives?
Just kidding... if he really ran his business like that he deserves everything he gets. Too bad he had to take some decent, hard working people with him.
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RealityCheck 8:26PM (10/01/2008)
He was only one person, so there must have been a lot of realy bad people running his stores. In reality at a dealer that size he may not of even known what was going on. Don't give these guys to much credit in the Brain Dept, I have know owners that could careless as long as they also got a big check at the end of the month. These dealers are so big its possible he could have been a saint and all this took place.
As to the bright idea of getting rid of inventory and ordering cars, the automaker including Toyota would go broke in a month! Over half the people would walk on their deposits and never get their car, its called buyers remorse ans it happens all the time on specail orders. The thing that they need to do is not make to many of the bad models in the first place like Chrysler has with the Avenger and its really bad twin.
Torrent 6:51PM (10/01/2008)
DAAAAYYYYYUM
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MemphisNET 6:54PM (10/01/2008)
The American Dream, screw the little guy, live beyond your means... gah.
Next thing we'll see is some conspiracy on the manufacturers end to tell dealerships to do what ever it takes to move the vehicles.
You read it here first (maybe... I dunno).
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Brent Schmidt 7:43PM (10/01/2008)
That'd be nice as I'm in desperate need for a new car after totalling it last week... and Ameriprise STILL hasn't sent my check over.
bakka 10:58AM (10/02/2008)
They will make a movie!
They made one about windshield wipers!!!!
MajorGeek 7:06PM (10/01/2008)
"The over 2,000 employees at the 14 dealerships are also considering a class action wrongful termination lawsuit that stems from the abrupt conclusion of their employment."
Am I missing something? He will file bankruptcy and turn up owning a Nissan dealer the next county or state over. What makes them think they can file a lawsuit? Even if they could, most of them knew what a shady outfit it was and remained employees regardless, so it almost makes them as liable as the guy they want to sue? Am I crazy here? Holler if I am missing something?
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TJ 12:56PM (10/02/2008)
Um, yeah - you ARE missing something. My husband worked in the wholesale parts department. He's a hard working, decent man and never did anything "shady". Last Wednesday, without warning, he was told to pack up his desk (along with everybody else in the dealership and offices) and go home. He was not given a final paycheck or anything and he won't be getting a final paycheck. We called the State Labor Board and they said "too bad, so sad"... sue him. Great, we don't need the money 10 years from now, we need it NOW!
MajorGeek 2:04PM (10/02/2008)
Well, luckily, hes a hard working decent man and should find a job no problem.
unemployed 5:13PM (10/03/2008)
I also was an employee here in las vegas, the little people do not run the company so do not acuse us of being dishonest. I was there for 2 and a half years worked hard and for what. No loyalty to us no money oh were so sorry. RIGHT Jobs are not easy to find these days good worker included.
TyWright 7:11PM (10/01/2008)
This kinda stuff is about to get so common that it won't be news. Crazy times folks!!
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Darrell 7:32PM (10/01/2008)
its funny because two days after suddenly closing the stores here in Orlando, I'd seen that they were still hiring! I've heard so many wrong-doings against them that I'm glad that I had to do business with them
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G-Meister 7:55PM (10/01/2008)
Ironic that according to the by-the-numbers post, Chevy had the smallest losses of the volume brands
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