Group 1 reports minor damage to its Gulf Coast dealerships
Group 1 Automotive Inc. said today that its Gulf Coast dealerships were spared major damage last week from Hurricane Isaac, but they expect light customer traffic while the region recovers from the storm.
The dealership group owns four stores in New Orleans and eight others in Gulfport, Miss.; Mobile, Ala.; and the Florida panhandle.
The company said that Isaac caused minor damage to inventory and stores, and that customer access to the dealerships will be limited until roads are cleared and power is restored in surrounding areas.
The affected stores accounted for 6 percent of Group 1’s sales during the second quarter ending June 30, the company said in a statement.
The New Orleans store was closed for six days and the others were shut for four to six days.
Group 1 said it is insured and estimates it will incur a $250,000 pretax deductible charge for damage to the stores, as well as losses estimated at less than $100,000 for inventory damage at the affected dealerships in the third quarter.
"Group 1's primary concern is to assist its employees in the areas affected by Hurricane Isaac," CEO Earl Hesterberg said in the statement. "We are also working to quickly assess and repair the damage at our dealerships in order to restore full operations for the local residents."
Group 1, of Houston, ranks No. 4 on the Automotive News list of the top 125 dealership groups in the United States with retail sales of 102,022 new vehicles in 2011.
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