GSIRM3

Probably old news, but if not, Champion Porsche apparently files for Chapter 11.

http://www.bizjournals.com/southflor...4/daily70.html

Likemystoppie?

Hmm. I remember someone saying...something ...about..........bigger dealers.............going.........







































Under. I wonder who it could have been. Hmmm.























Told ya so. Grab some popcorn folks. This is JUST the begining.

fer2367

Wow...I have been there for services and upgrades regularly...I can only speak highly about my customer experience. I hope they are able to sort the financial issues out and stay in business.

ADias

You would expect then that remaining dealers should be willing to deal...

nyca

Amazing really. You would think they could have managed their inventory better, or was this just a case of having too many fixed operating expenses and not enough cash flow from (reduced) sales to cover it?

nyca

This is not a chapter 7, so I assume they will not liquidate their inventory. But if it was (or becomes) a chapter 7, does PCNA have first right to buy back the cars in stock?

Le Chef

Who's to say it's not a financing arm that's dragging them down? Dealers should know well enough how to manage the inventory to stay afloat.

sid_vicious

Isn't inventory secured debt? That is, whoever finances their floor plan just takes the cars back? I guess my question is just because they are in Ch11 reorg or Ch7 liq can one actually get a car at a "steal"? The link to the article mentions very little unsecured debt, so i'm guessing Porsche financial serivices or some other finance arm owns the cars, and they can sell through another channel. Curious if anyone knows? Looking at how things are getting done these days, maybe the UAW will get the cars for .20cents/dollar!

djcxxx

People assume that capital generated in a business is properly re-invested, after reasonable and customary expenses are paid. Unfortunately even companies with excellent sales end up undercapitalized because of high salaries and unreasonable expenses that drain away working capital. South Florida seems to have an epidemic of this sort of "business model". Champion billed itself as the largest Porsche dealer in the world.

stevebmd

anyone know if they are dealing?

V-Vo/t

they still have cars on Ebay, and are still higher priced than others!

Likemystoppie?

+1

You seem to get it.


Why is it some of you guys think that the Car Business is exempt from the ups and downs as any other 'legit' business?

Shouldn't have Lehman Bro's known better? AIG? National City? Bear Stearns? Ect ect ect....


"Should have known to manage their inventories..."?? While I agree that with regards to certain practices; they should have 'known' better. However I challenge anyone of you to do a better job with a company that has from $100mm to $1.5B in annual sales.

Not computer chips. Not brokering money. Not insurance.


Cars. Selling and managing Cars.



You do that for ten consecutive years (in an up and down economy) and then I'll listen to what you have to say. Even on the front lines (Sales People)(Sale Managers) we see what happens. It ain't as easy as it looks. Not by a long shot.

Likemystoppie?

What does that mean, exactly? You're seeing great deals now, what more do you want?

DanJK

I'd take your challenge in an instant. Better job than chapter 7, chapter 11? Yea, I'll take that.

Likemystoppie?

LOL

Maybe Champion is hiring........