Claremont Auto Mall Placed in Receivership After Loan Default

Claremont Auto Park has been placed under outside management and may be sold after defaulting on $20 million in loan payments, according to court records.

A Superior Court judge has appointed a receiver to oversee spending at the seven-dealership auto mall, which opened in 1986 and is responsible for 45% of Claremont’s sales tax revenue. A receiver is similar to a court-appointed bankruptcy trustee.

According to a Feb. 5 complaint filed by the auto mall’s secured lender, General Electric Capital Corp., Claremont Auto Park and its component dealerships owe the lender $20 million and have repeatedly failed to meet loan payment deadlines. The mall’s owner, Joseph E. Wilson, had agreed in October to cut salaries, commission and advertising costs, but still couldn’t pay back the loan, the records show.

Wilson owns all seven dealerships, which sell models made by Daihatsu, Isuzu, Pontiac, GMC, Sterling, Hyundai and Acura. He was unavailable for comment Thursday.

David Ray, the court-appointed receiver, said problems at the auto mall don’t stem from declining sales. Ray will be responsible for making sure the dealerships meet financial obligations to General Electric Capital Corp. and other creditors.

“The current owner might find another company to joint venture with,” Ray said, “but it’s more likely they’ll sell.”