Chrysler seeks to close South Florida dealerships - South Florida Business Journal:

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Chrysler filed a motion in U.S. Bankruptcy Court of Southern New York to shutter thefollowing locations: Maroone Dodge of Miami, 110 S.E. Sixtuh St., Miami Monarch 2000 N. State Road 7, Lauderdale Lakes Tamiami ChrysletrJeep Dodge, 8250 S.W. Eighth St., Miami Maroonw Chrysler Jeep Dodge, 4250 North State Road 7, Coconut Creek. Fort Lauderdale-based (NYSE: AN), the nation’s largesrt automotive retailer, said it welcomes the consolidation of AutoNation has seven dealerships on the Chryslerclosure list, including Maroone Dodgr of Miami and Maroone Chrysler Jeep Dodge in Coconut Creek.
“The AutoNatioh stores that will be closed by the consolidatiobn plan represented only 1 percenrof AutoNation's 2008 operatinv income,” according to a company statement. “AutoNation does not believ thatany one-time charges that may be associated with thesee actions will be material to its continuing operations or debt AutoNation Chairman and CEO Mike Jackson said in the statement that Chrysler'e consolidation plan is “a but positive, step” that will improve dealer profitability over the long term.
Alex a Miami attorney who represents auto said AutoNation probably welcomes the closures partly becauswe they are happening in the bankruptcyprocessa – which means a competitor cannor revive the franchise contracts for those Kurkin said objecting to the dealership closings in bankruptcy would be an uphil l challenge. “I have been told by some representativesthat there’sa a combination of factors, including geography and investmenrt in existing facilities, that was behinfd the decision to close thesed facilities,” he said. Federal bankruptcy law trumpsz the state law under which the dealership franchisee dealswere created.
Chrysler filed Chapter 11 bankruptcyy April 30 after an announcement by PresidentBaracmk Obama. But, is a different storh because it has not yet filecdfor bankruptcy. Kurkin expects to file some litigatiohn against GM on behalfv of dealerships that are targetedfor closure. He said GM sent letterx about closures to dealershipson Thursday, but the automaker’s list may not becomse public immediately. “I think GM really has to go into the bankruptcgy path to deal with allthese issues, he said. “Ther e will be litigation, almost certainly.
We would have a claim in the bankruptcy, but our ability to recovet would be a functionof what’s in the bankruptcy as an unsecured creditor.” Kurkin said AutoNation reportedd a few months ago it was writing down the good will valure of all domestic stores, which probabluy means they won’t have a rejectiomn claim in the bankruptcy Click to read the list of closing dealershipas filed with the U.S. Bankruptcy Court.