While the Reagor-Dykes Snyder dealership has not filed for bankruptcy, financial problems are mounting for the local dealership.
The Snyder location has $37,859 in outstanding checks written to Scurry County that were returned between June 1 and Aug. 31, according to County Tax Assessor/Collector Jana Young. The Snyder Daily News received the information through a Texas Public Information Act request.
The dealership also owes the county $750 in returned check fees, Young wrote. The outstanding checks are for tax, title and licenses on vehicle sales made here. The 24 outstanding checks range from $4,158 to $6.50, Young wrote.
And the county is not alone. Even though the Snyder dealership is not part of the bankruptcy, some local businesses say have not been paid for goods and services purchased by the dealership.
The state is also getting involved in the case after the Texas Comptroller’s office filed a notice of appearance in the bankruptcy case. The office has not said how much money the dealerships owe the state.
Snyder’s location has had vehicles and traffic cones blocking entrances for several weeks. The front doors were locked Thursday afternoon and the service entrance had a sign posted that it was closed for lunch.
Officials with Reagor-Dykes have not announced the closing of the local dealership, which is not part of the Ford Motor Credit Company lawsuit filed in July. However, according to court documents, that could change and additional dealerships may file for bankruptcy protection in the near future, according to media reports. Last week, Reagor-Dykes Auto Group said companies not currently in bankruptcy “may be filing Chapter 11 petitions.”
The auto group has less than two weeks to respond to Ford Motors’ original lawsuit claiming Reagor-Dykes defaulted on $40 million Ford is owed for vehicle sales.
The group’s companies in bankruptcy are protected from the Ford lawsuit, but the non-bankrupt companies are still subject to Ford’s claims. Companies in the bankruptcy case are Spike Dykes Ford Lincoln in Lamesa, Reagor-Dykes Auto Mall in Midland, Reagor-Dykes Mitsubishi and Reagor-Dykes South, both in Lubbock, Reagor-Dykes Mitsubishi in Amarillo, Reagor-Dykes Ford Lincoln and Reagor-Dykes Toyota, both in Plainview, and Reagor-Dykes Chevrolet in Floydada
“The circumstances giving rise to (the lawsuit) are unusual and necessitate further investigation before the defendants can draft an adequate answer and response,” Reagor-Dykes’ lawyers wrote in requesting an extension to respond to the lawsuit.
According to the lawsuit filed by Ford Motor Credit in July, the dealerships sold Ford Credit vehicles without sending required payments and submitted false or inaccurate information. The lawsuit included contracts dating back to 2008.
According to a Reagor-Dykes press release, the dealership is establishing a customer meeting process in Lubbock.
“This process will allow any customer that has been negatively impacted to meet with the Auto Group and discuss the issues. We ask all such customers to call our corporate office at (806) 776-8700 and speak to our receptionist for the purpose of setting up an appointment with one of our representatives,” the press release stated.
The company will allow out-of-town customers to call and speak to representatives.