3 Duarte Car Dealerships in Bankruptcy Close Their Doors

Duarte Nissan Inc., which owns three dealerships in the city’s 210 Freeway Autoplex, shut its doors this week, less than two months after filing for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

Gates to the sprawling facility were locked Thursday. Car models were still on display in the showrooms and outside.

Two security guards posted near the entrance said the business had been shut down since Monday afternoon.

The closure apparently prevented customers from picking up their cars.

Basile Georgescu of Tujunga said Thursday he has tried for the last 12 days to retrieve the $7,700 used car he bought in February and left to be serviced. Georgescu said he was told by officials of Tokai Credit Corp., Duarte Nissan’s major creditor, that he’d have to go to federal court to get his car back.

In a related development, Cecil Erwin, area commander for the investigation section of the state Department of Motor Vehicles’ inland office, said the agency is investigating complaints from Duarte Nissan customers about improper title transfers and misrepresentation by salespeople. He would not elaborate.

An attorney for Duarte Nissan, Robert Mayer, confirmed the dealership’s closure. But he referred other questions to the owner, Bruce Low. Neither Low nor other company officials could be reached Thursday.

Duarte Nissan--which includes Nissan, Isuzu and Suzuki dealerships--had remained open since it filed for reorganization of its debts and protection from creditors under Chapter 11 in January, Duarte City Manager Jesse Duff said.

In an interview two months ago, Low said the dealership’s financial troubles stemmed from a suit against one of its creditors, but he would not elaborate. Low said about 10 employees, mostly salespeople, were laid off when the company filed for bankruptcy.

Auto sales had surged since the businesses moved to the Autoplex in Duarte. Last year, 5,000 models were sold for a total of $60 million, compared with 2,500 in 1988, when the firm was in Arcadia, Low said in January.

The three dealerships generated $300,000 of Duarte’s $1.65 million in sales tax revenue last year.

The 2-year-old Autoplex is on 47 acres near the Foothill Freeway on the Duarte-Monrovia border. The Autoplex has 10 spaces for dealerships, five of which are occupied.

When fully occupied, it was expected to generate $2 million to $3 million in annual sales tax revenue for the city, which had contributed $7.5 million to the project.