DETROIT --U.S. Bankruptcy Judge Marci McIvor approved the sale of Ford dealer Jerome-Duncan Inc. to Suburban Collection of Troy, Mich., on Wednesday, Jan. 25, according to lawyers involved in the case.
According to Crain's Detroit Business, a sister publication of Automotive News,the Ford dealership in Sterling Heights, Mich., filed for Chapter 11 bankruptcy in June after accruing debts to Ford Motor Credit Co. Suburban Collection was the only approved bidder in an auction of the dealership's assets held last week.
The dealership, co-founded by Richard Duncan in the 1950s, was also mired in a power struggle between Duncan and his daughter, Gail Duncan, who had been president and majority shareholder since the mid-1990s.
Richard Duncan supported the sale to Suburban, said Sheryl Toby, a partner with Dykema Gossett P.L.L.C. and attorney for Duncan.
Gail Duncan and her husband, Shashi TejPaul, filed an objection with the court, alleging that the auction of the dealership wasn't conducted fairly.
Suburban Collection had offered to pay about $14.8 million for the dealership's real estate, goodwill and furniture. The final purchase price was the subject of several hours of last-minute negotiations on Wednesday.
Jason Bank, partner with Schafer & Weiner P.L.L.C. in Bloomfield Hills, Mich., said late Wednesday that he was unclear of the final additional amount. Bank represents Jerome-Duncan.
Also left unresolved is the fate of four other dealerships founded by Gail Duncan and TejPaul. Toby said it's possible Mazda dealerships in Woodhaven, Mich., and Sterling Heights, Mich., as well as a Hyundai and a Kia dealership, will be auctioned separately.
You may e-mail Brent Snavely at [email protected]