03-15-2013, 06:22 PM | #1 |
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Berrang Cadillac GMC Files for BK prorection
Berrang Cadillac GMC located in Wanyesboro, Va filed for bankruptcy protection on March 1st, 2013. Berrang once sold Cadillac GMC Pontiac Chrysler Dodge Jeep brands today in 2009 he lost it all but regained Cadillac and GMC with Dealer Arbitration. Pat Berrang had his store listed for sale in Automotive News since 2007 until late 2012. In the petition his store had loses of 700k in 2010-2011 combined. It lists Assets of $688K and Liabilities of well over $4Million. The liability is his facility which was built in late 2002 to house GM and Chrysler. It is also tied to his floorplan which was only 8 new vehicles and 10 used. The company did not own the new facility Pat and his wife did. He also filed for personal BK as well. This is just another shot in the arm for the "Small" dealer in rural America. Here is the Article from the Local Newspaper. Last edited by ohiobuckeyes; 03-15-2013 at 06:25 PM. |
03-16-2013, 05:23 AM | #2 |
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The pain of '09 continues. I pray that this family can keep their spirit up as they struggle to get their life back. I think Jim Press should have to spend 1 hour with each of these dealers that have invested a lifetime building a business only to have it stripped away.
Take a close look at that picture.....I'm not sure if the photographer realized it but I can see the Chrysler arch entrance at the right, made me gag. I need to stop now. |
03-16-2013, 02:23 PM | #3 |
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What a waste. Building looks modern and retail friendly. Appalling that this all stems from a manufactured crisis and political false dilemma~"Shared Sacrifice."
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03-18-2013, 12:57 PM | #4 | |
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It's sobering to think a dealer who started his business over 35 years ago would be forced to file Chapter 7 Bankruptcy for both his business and personal finances - largely due to events beyond his control. The events since 2009 must have seemed like an un-ending nightmare with occasional moments of hope. The dealer lost both his GM and Chrysler Franchises to the OLDCO terminations and then was reinstated as a Cadillac/GMC dealer. It's also interesting to read ohiobuckeye's post that the dealership had been listed for sale since 2007. I bet the dealer and his wife have aged 20 years in the past five..... Good catch on the arch - it appears the dealer built the facility that GM and Chrysler wanted in 2002 and both OEMs shot him in the head in 2009. |
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03-18-2013, 01:04 PM | #5 | |
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Hall also commented on the diminished profit opportunities associated with selling new cars and the need for dealerships to focus on used car sales and fixed operations to remain viable. Those same thoughts have been expressed on this forum on numerous occasions. |
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03-18-2013, 01:07 PM | #6 | |
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It's possible this dealer could have survived the recession if he didn't have to endure the GM and Chrysler terminations. After years of fighting he's left with nothing - it's just a huge waste that never needed to happen. |
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03-18-2013, 03:22 PM | #7 |
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PLEEEEEASE make that hour in a locked, soundproofed room supplied with Duct Tape and an assortment of both sharp and blunt opjects...
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04-05-2013, 07:20 PM | #8 |
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Update on Thursday First Bank and Trust sold the foreclosed Berrang Cadillac Gmc Facility at auction. The facility with 6 additional acres of land sold for $1.810 Million the local hospital bought the property to increase our presence in the community. The building and land appraised for $3 million with the city. Next month Mr. Berrangs personal home with be auctioned to help pay the almost $4.5 million owed.
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04-06-2013, 05:49 AM | #9 | |
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04-08-2013, 09:49 AM | #10 | ||
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It's too bad the facility will never house a dealership again - I'm guessing the hospital assigned almost zero value to the facility and were only interested in the property. Quote:
I wonder if there are any floorplan lenders that are issuing new lines that don't require personal guarantees? |
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04-08-2013, 11:09 AM | #11 | |
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04-08-2013, 07:28 PM | #12 | |
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I know in the past if you where a GM Motor Holdings dealers were not allow to sign a personal guarantee with GMAC since his/her money was never fully invested it was more Motor Holdings cash. |
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04-09-2013, 01:45 PM | #13 | |
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I'm guessing that most Dealers today probably have a personal guarantee with both their OEM and their flooring source. Maybe competition for flooring accounts will eliminate that requirement but I'm not betting on it. |
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04-09-2013, 02:00 PM | #14 | |
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In some ways it makes sense that the flooring source was a lender other than Ally - I can't imagine Ally would have allowed the dealer to take so much time to try and resolve their situation. It's too bad Mr. Berrang couldn't find a solution - I'm guessing he and his family will be mostly wiped out after he goes through his personal bankruptcy. |
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