Bill Heard Chevrolet Customers 'Freaking Out'
TAMPA - When a car dealer goes under, it can be a nightmare for customers.
Everything from new car titles to car loans can end up scrambled, or worse, frozen amid a bankruptcy process — turning a major purchase of a car or truck into a major headache.
That's the concern for customers of Bill Heard Chevrolet, the nation's largest Chevrolet dealer, which closed operations in Plant City on Wednesday amid financial problems. The parent company, Bill Heard Enterprises of Columbus, Ga., operated 13 dealerships in Tennessee, Georgia, Arizona and Florida, including locations in Plant City and Sanford.
Will Some Reopen?
Even before the Bill Heard closure, the company faced issues with some of its business practices. In 2007, two of its dealerships in Florida signed a $400,000 settlement with the state Attorney General's Office over what the state called "numerous misrepresentations" in advertisements.
Still, the closure came as a surprise to General Motors, said spokeswoman Susan Garontakos.
"This is all new to us, too," Garontakos said. "We found out about this [Wednesday] when reporters started calling us saying it was closed."
Some of the Bill Heard dealerships could re-open, she said. General Motors has shown interest in the company's Scottsdale, Ariz., location, either by selling it to another dealer or opening it to a pool of dealer candidates.
Eventually, GM will look at the Plant City location and review options, such as offering it to other companies that want to open a dealership, she said.
For Bill Heard customers, a lot will hinge on whether the company files for bankruptcy protection. If the company does file Chapter 11 reorganization, or worse Chapter 7 liquidation, many recent customers can find themselves in a long line of creditors that are owed money.
That bankruptcy process can take months to proceed as federal courts sort out the order of whom to pay and in what portions: taxes, banks, lawyers, owners and car customers.
TAMPA - When a car dealer goes under, it can be a nightmare for customers.
Everything from new car titles to car loans can end up scrambled, or worse, frozen amid a bankruptcy process — turning a major purchase of a car or truck into a major headache.
That's the concern for customers of Bill Heard Chevrolet, the nation's largest Chevrolet dealer, which closed operations in Plant City on Wednesday amid financial problems. The parent company, Bill Heard Enterprises of Columbus, Ga., operated 13 dealerships in Tennessee, Georgia, Arizona and Florida, including locations in Plant City and Sanford.
Will Some Reopen?
Even before the Bill Heard closure, the company faced issues with some of its business practices. In 2007, two of its dealerships in Florida signed a $400,000 settlement with the state Attorney General's Office over what the state called "numerous misrepresentations" in advertisements.
Still, the closure came as a surprise to General Motors, said spokeswoman Susan Garontakos.
"This is all new to us, too," Garontakos said. "We found out about this [Wednesday] when reporters started calling us saying it was closed."
Some of the Bill Heard dealerships could re-open, she said. General Motors has shown interest in the company's Scottsdale, Ariz., location, either by selling it to another dealer or opening it to a pool of dealer candidates.
Eventually, GM will look at the Plant City location and review options, such as offering it to other companies that want to open a dealership, she said.
For Bill Heard customers, a lot will hinge on whether the company files for bankruptcy protection. If the company does file Chapter 11 reorganization, or worse Chapter 7 liquidation, many recent customers can find themselves in a long line of creditors that are owed money.
That bankruptcy process can take months to proceed as federal courts sort out the order of whom to pay and in what portions: taxes, banks, lawyers, owners and car customers.
