Supporting Management and Stakeholders While Guiding a Business to Its Conclusion of Operations

Top 3 Areas of Impact

Auto sales icon

Several thousand securitized auto loans serviced while concluding business operations.

Storefront icon

39 retail locations transitioned to a successful close.

5 icon

5 months from the start of the engagement to the concluding Chapter 7 filing.

Summary

Learn how BDO helped a U.S.-based used car dealership and financing group navigate their journey through a Chapter 7 bankruptcy filing.

Cars waiting in traffic

Challenge

A used car dealership and financing group was facing working capital issues and liquidity pressures. They needed a knowledgeable guide with in-depth auto industry experience and the right financial proficiency to file for Chapter 7 bankruptcy. On the road to filing for bankruptcy, the used car dealership and financing group needed to continue business operations, resolve working capital and lender issues, and service securitized auto loans.

Results

When BDO’s specialized resources stepped in as CFO, the company was able to complete its reporting on time. This enabled the CEO (which was newly assigned by the company) and we worked closely with the new CEO to improve profitability throughout most of the year.

The joint decision to file for Chapter 7 bankruptcy was not one taken lightly. When working with the management of this auto lender, we aimed to preserve stability and guide operations. In addition, a keen awareness of stakeholder and customer impact was maintained while moving through the process and planning for a post-Chapter 7 future for all involved.

Mark Houston
Managing Director, Turnaround & Restructuring Services

Turnaround and restructuring services as well as operational value creation services within the United States are offered through BDO Consulting Group, LLC, a separate legal entity and affiliated company of BDO USA, P.C., a Virginia professional corporation. Certain turnaround and restructuring services may not be available to attest clients of BDO USA under the rules and regulations of public accounting.