Bill Heard Chevrolet in Scottsdale, AZ closes down

[XDCX]

News reports indicate that Bill Heard Chevrolet has closed down their Chevrolet Dealership in Scottsdale, AZ laying off over 140 people.

Bill Heard is a private dealer group that holds several Chevrolet dealerships throughout the Midwest. The dealer group promotes itself as the largest seller of Chevrolets in the United States.

Here's a link to the news report: http://www.eastvalleytribune.com/story/125607

[XDCX]

Their was a front page story in Automotive News that reported that GMAC had recently pulled flooring for some of Bill Heard's dealerships.

Another news report cited the flooring issue with GMAC and added a quote from Bill Heard stating that the dealership's failure was the result of immigration reform that forced many Hispanic customers out of the state.

Here's a link to the news report: http://www.azcentral.com/arizonarepu...heard0914.html

The dealership facility was less than two years old.

[XDCX]

In response to the closing of Bill Heard Chevrolet, GM officials indicated that they intend to find a new dealer and re-open the facility.

Here's a link to the news report: http://www.azcentral.com/news/articl...0919cover.html

[XDCX]

If the closing of Bill Heard's Scottsdale Dealership was a hint of things to come, the other shoe may drop later this week.

News reports indicate that all of the remaining 13 Bill Heard Dealerships may close this Friday. It's unclear whether the stores will be closed down or be taken over by GMAC and continue in operation.

Here's a link to the news report: http://www.ledger-enquirer.com/292/story/449483.html

[SHACOS]

Sounds like someone went bankrupt...

[okcarl]

My source at General Motors told me that the other shoe has dropped and that the stores are all closed or will be closing. Apparently there is talk of involvement by GM and the AG's in several of the states that they did business in. I think there is a lot more to all of this that just GMAC pulling the lines of credit.

[XDCX]

Originally Posted by okcarl

My source at General Motors told me that the other shoe has dropped and that the stores are all closed or will be closing. Apparently there is talk of involvement by GM and the AG's in several of the states that they did business in. I think there is a lot more to all of this that just GMAC pulling the lines of credit.

Your source is correct - All of the Bill Heard stores have been closed down.

It's amazing that the #1 Chevy Dealer in the Nation has been taken down in this tough business climate.

[XDCX]

As the banks work to determine their exposure to the Bill Heard bankruptcy Heard's $18 Million Mansion is scheduled to be auctioned today.

The news report indicates that there's a $10 Million mortgage against the property. Given the soft real estate market it will be interesting to see what it sells for.

Here's a link to the news report: http://www.ledger-enquirer.com/news/story/567882.html

[XDCX]

Originally Posted by XDCX

As the banks work to determine their exposure to the Bill Heard bankruptcy Heard's $18 Million Mansion is scheduled to be auctioned today.

The news report indicates that there's a $10 Million mortgage against the property. Given the soft real estate market it will be interesting to see what it sells for.

Here's a link to the news report: http://www.ledger-enquirer.com/news/story/567882.html

News reports indicate that the property sold for $7.65 Million - but it was the lien-holder that made the first and only bid.

I guess even a $10 Million discount couldn't induce a bid in this economy.

Here's a link to the news report: http://www.ledger-enquirer.com/292/story/568389.html

[okcarl]

It looks like the bank bid was nothing more than an attempt to keep the property from being given away and them loosing their shorts. In the end though they have a $10 million mortgage on a property that appraised for $7 million. I think they are going to have to hold on to it for a long time for any kind of valuation recovery to happen.

[XDCX]

Originally Posted by okcarl

It looks like the bank bid was nothing more than an attempt to keep the property from being given away and them loosing their shorts. In the end though they have a $10 million mortgage on a property that appraised for $7 million. I think they are going to have to hold on to it for a long time for any kind of valuation recovery to happen.

The person that wrote that loan for the bank probably thought it was as good as gold. You're loaning $10 Million against an $18 Million piece of real estate that's being purchased by a multi-millionaire car dealer.

It's really amazing when you step back and look how bad the economy is in some areas. You know things aren't good when you have Billionaires that are committing suicide.