Off Rent Simplest, a used-vehicle-only dealership workforce with operations in Florida and Texas, filed Thursday for Bankruptcy 11 chapter coverage.
In a information loose, the corporate stated “significant challenges and competitive pressures resulting from unprecedented changes” to the automobile retail terrain over the terminating few years necessitated a wind-down of its operations.
Previous to the submitting, Off Rent Simplest indexed 5 dealership places in Florida and one sister dealership, CarSquad, in Katy, Texas. The corporate terminated all 545 workers “immediately prior” to Thursday, consistent with a court docket submitting. The internet sites of Off Rent Simplest and CarSquad displayed “closed to the public” notices Thursday.
“The industry has been impacted by inventory scarcity, and vehicle price inflation stemming from supply chain disruptions and multi-year declines in new vehicle production,” the corporate stated within the information loose. “Elevated pricing and rising interest rates have further deteriorated conditions in the automotive retail market, weakening consumer demand and affordability.”
The case used to be filed within the U.S. Chapter Courtroom for the District of Delaware.
Colo Actual Property Holdings — a Delaware LLC of which Off Rent Simplest is a guardian — additionally filed a voluntary petition for vacay beneath Bankruptcy 11, consistent with filings. So did Off Rent Simplest’s guardian corporate, Off Rent Simplest Dad or mum.
All 3 entities filed a movement inquiring for that the Bankruptcy 11 circumstances be consolidated.