E-Mail
Print
tool name
closeWARNER ROBINS — Car dealer Eddie Wiggins said Wednesday that he has filed for Chapter 11 bankruptcy, but he hopes to reorganize with new investors and remain in business.
“Our plan is to be closed for New Year’s Day and then be back open Friday with a skeleton crew,” he said. “We hope to go before a judge either Monday or Tuesday and have our reorganization plan approved so we can keep trying to sell cars and keep our employees working.”
Wiggins said he has 47 employees at his GMC, Buick and Pontiac dealership on Russell Parkway.
His financial woes are related to the poor economy that saw his sales drop off by about 50 percent in 2008, but Wiggins said he was forced to file for bankruptcy because he has not been paid about $140,000 in rebate and incentive money he is due from General Motors Corp.
“I don’t owe GM anything, and I’m up to date with GMAC (the financing company for GM dealers). But I’m having to file and notify my creditors because of the cash flow problems from not receiving what GM owes me,” he said.
Wiggins explained that he normally receives rebate payments and payments for warranty work his service department performs every two weeks from General Motors.
“But I haven’t received any payments since Nov. 27. GM said then they were delaying payment until Dec. 11, but nothing has come from them since then,” he said. “Smaller dealerships depend on that cash flow to operate, and we haven’t gotten it.”
Wiggins said that although he isn’t behind on payments to GMAC, which finances the new cars on his lot until he can sell them, it flagged his dealership a few months ago because its sales were off.
“Before, GM would send the rebate checks directly to me, and then I’d pay GMAC and my other creditors,” Wiggins said. “But after GMAC put us on watch, the last check we received was made out to both my dealership and GMAC. We sent it on to GMAC, and they sent back what they owed us. But now GM is saying GMAC has the ($140,000 rebate) payment held up, but GMAC says it hasn’t received the money.”
Wiggins said he has met with GM officials, who offered to take over the dealership, but that he would still be liable for any losses from his used car inventory.
“I think I can sell the used cars without a loss, but I’m not sure GM could, so I decided on filing Chapter 11 so that we may be able to remain in control with the court’s approval,” he said.
Monday, the federal government committed $6 billion to GMAC to stabilize it. GMAC finances about 80 percent of the wholesale purchases of GM’s cars by dealers worldwide, according to The Wall Street Journal. Traditionally, it also has been the largest source of financing for the actual buyers of those vehicles once they reached the showroom.
Wiggins, who has been in business for 40 years, has been very active in the community and an advocate for Robins Air Force Base.
Houston County Commission Chairman Ned Sanders, who has worked with Wiggins on a number of community projects, said he was saddened to learn of the bankruptcy.
He said it would be hard to find anyone who has contributed as much of their time, effort and resources to boosting the local community as Wiggins.
“I hope he can work things out and stay in business. I knew his sales were down, but it comes as a shock to see it get this far,” Sanders said. “But no matter what happens, I don’t think Eddie will stop being involved in the community here. He’s been a wonderful leader and will still be called on for his expertise.”
Wiggins said he had been planning to retire at the end of the year, but he has had to put those plans on hold.
“I even had some commercials in November announcing my retirement. I was going to sell (the dealership) and go home, but then all this came up,” he said.
Wiggins said he hopes he can convince a couple of investors to partner with him, and that the court will approve his reorganization plan to keep the dealership open.
“Hopefully we can get the money from GM and get all this straightened out in 60 or 90 days and go on selling cars and making a little profit. But if not, then I’ll try to sell the dealership. I don’t want to have to just shut it down and let everyone go. I don’t want to do that to the great group of people I have.”
To contact writer Chuck Thompson, call 923-6199, extension 235.
@Nyx.CommentBody@