DETROIT - Mel Farr, once the holder of the nation's largest black-owned car dealership group, has sold his last two new-car franchises.
The Hyundai and Kia franchises were sold to Sterling Motors LLC, a company owned by Jerome-Duncan Holdings.
Scott Reas, executive manager of Jerome-Duncan Holdings, declined to disclose the terms of the acquisitions. Farr didn't return several phone calls last week.
Farr built his growth on lending to customers with high credit risks and then racked up his own debts when customers didn't make loan payments. Farr defaulted on a $36.5 million bond package granted by Wall Street investors in 2000, according to court records.
Farr still has a used-car dealership, Mel Farr Motors Inc., in Detroit.
Crain's Detroit Business is a sister publication to Automotive News.