Published: July 18, 2009
The days of Ernie Haire Ford as an independent car dealership are now numbered. A federal bankruptcy court in Tampa has ordered the company and its related properties sold at auction and picked a preferred buyer.
The Elder Automotive Group, a major Jaguar and Aston Martin dealership in Tampa, was chosen as the preferred buyer by the court.
The final sale price was not set.
Depending on final appraisals, inventory levels and bidding procedures, the purchase could go through for $6 million to $8 million, said Robert Elder, president of Elder Automotive Group, which is based in Detroit and has several dealerships in the area.
"We feel very good about the deal," he said. "I grew up in the business, and now is a good time to get some great deals buying properties like this."
Elder will purchase the dealership rights, lease several properties and rename the organization, Elder said, likely "Ford of Tampa."
For now, the inventory on the lot is "dwindling," he said, as the dealership sells off remaining cars and does not bring in more. In the first week after the transaction, Elder said, he plans to renovate several buildings and prepare to fill the lot back up through October.
Other bidders can jump into the auction, the court said, with some conditions. For now, it's scheduled for 9:30 a.m. Aug. 17 at the courthouse on Florida Avenue, as set by the court. Elder said several other dealerships have expressed interest in competing with his prearranged purchase. Any prevailing bidder besides Elder would have to pay a breakup fee of $150,000 to Elder to complete an alternate deal.
Ernie Haire has about 175 employees. Its principal office is at 9545 N. Florida Ave. in Tampa. A bankruptcy filing in November included other Ernie Haire companies such as Big Dog Motorcycles of Tampa, Ernie Haire Used Car Auto Mall, Ernie Haire Used Car Supercenter of Tampa and a local Quick Lane Tire & Auto Center.
Elder said he hopes to bring on as many current employees as possible.
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