American Car Center files for bankruptcy
MEMPHIS, Tenn. (WMC) - American Car Center has filed for bankruptcy nearly a month after the company went belly-up.
The used car company abruptly ceased all of its businesses and operations on Feb. 24. According to the Better Business Bureau, the Memphis-based company owned 85 locations across 10 states.
Employees claim they were notified about losing their job the same day the company closed its doors.
According to court documents filed on March 14, RAC Dealership, LLC, known by trade name American Car Center, is seeking relief through a Chapter 7 bankruptcy filing.
As a result, American Car Center is looking to repay its over 1,000 creditors by liquidating the company’s assets valued between $50 million and $100 million.
According to the Tennessee Department of Commerce & Insurance (TDCI), all loans made through American Car Center’s subsidiary, American Finance, are in the process of being purchased by Westlake Financial Services.
Once the purchase of the book of business is complete, Westlake Financial Services will reach out to each individual purchaser to advise of the next steps.
Those with questions about American Car Center’s closure are encouraged to visit the dedicated TDCI consumer alert page.
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