DMV Won’t Let 2 Ailing Car Dealers in Glendora Reopen

The state Department of Motor Vehicles refused Tuesday to rescind its 30-day suspension of the sales licenses of two large Glendora car dealerships, keeping the ailing businesses closed.

DMV officials scheduled a hearing for Aug. 22 in Los Angeles to allow Grand Motors and Grand Chevrolet officials to contest the suspension of their sales licenses, DMV spokesman William Gengler said. DMV and Grand officials met in Los Angeles late Tuesday to discuss the suspension further, he said.

Grand Motors and Grand Chevrolet had their sales licenses suspended by the DMV Friday after investigators found evidence of illegal business practices, Gengler said.

Both dealerships and two affiliated companies, Grand Rizal and Grand Wilshire Finance Corp., have filed for bankruptcy protection in the past week. All are controlled by Eminiano (Jun) Reodica, who is believed to be out of the country.

Attorneys for the dealerships had hoped the DMV would lift the suspension and allow the dealerships to resume operation while they attempt to reorganize under Chapter 11 of the U.S. Bankruptcy Code.

Edward Wolkowitz of the Los Angeles law firm of Robinson, Diamant, Brill & Klausner, which is representing the dealerships, said attorneys are “exploring the question” of whether a bankruptcy court could reverse the DMV decision. That might be possible if a bankruptcy judge determined that the suspension interfered with the companies’ attempts to repay creditors.