Texas dealer group Reagor Dykes falls hard and fast
The audit also identified 15 instances in which dealerships sold a vehicle and then, after it was sold, planned that vehicle with Ford Credit even though it was no longer in stock, the lawsuit said.
For now, the concessions are open.
On August 3, the group released a statement to local media which read in part: “Reagor-Dykes Auto Group was very pleased to have been able to enter into an interim agreement with Ford Motor Credit to allow us to pay our employees and their associates. There is no doubt that the past seven days have been difficult for the Reagor-Dykes Auto Group family, but we are determined to continue working with Ford Motor Credit to sell our current inventory and provide the best possible service to our customers. The doors of all our dealerships will open Monday for business. “
Despite this statement, the staff layoffs have reduced the ability of dealers to operate fully. Local TV station KCBD reported on Tuesday August 7 that despite the group’s claim that all stores will be open on August 6, at least two locations were not, while another store was open for sale. but not at the service.
In a statement, Reagor Dykes said: “Pursuant to the bankruptcy judge’s order issued on Friday, dealers have put some staff on leave to stay on budget and avoid exceeding authorized expenses agreed to by Ford Motor Credit.” .
In addition to setting budget limits, the court order requires dealerships to pay Ford Credit within one business day for all vehicles sold, and prohibits stores from offering loan services or performing transactions. transactions or auctions of more than two vehicles without the consent of Ford Credit. .
Alexa St. John contributed to this report.