The audit also identified 15 cases in which the dealerships sold a vehicle and then, after it was sold, floorplanned that vehicle with Ford Credit even though it was no longer in inventory, the suit says.
For now, the dealerships are open.
On Aug. 3, the group issued a statement to local media that read in part: "Reagor-Dykes Auto Group was very pleased that it was able to reach an interim agreement with Ford Motor Credit to allow us to pay our employees and their associated benefits this afternoon. There is no question that the past seven days have been difficult for the Reagor-Dykes Auto Group family, but we are determined to continue to work with Ford Motor Credit in selling our current inventory and providing the best possible service to our customers. Doors at all of our dealerships will open Monday for business."
Despite that statement, staff layoffs crimped the dealerships' ability to operate fully. Local TV station KCBD reported on Tuesday, Aug. 7, that despite the group's claim that all stores would be open Aug. 6, at least two locations were not, while another store was open for sales but not service.
In a statement, Reagor Dykes said, "In compliance with the order of the Bankruptcy Judge issued Friday, the dealerships have placed on leave certain personnel to comply with the budget and avoid exceeding the allowed expenditures agreed upon by Ford Motor Credit."
Besides setting budget limits, the court order requires the dealerships to pay Ford Credit within one business day for any vehicles sold, and bars the stores from offering any service loaners or doing dealer trades or sales at auctions of more than two vehicles without Ford Credit's consent.
Alexa St. John contributed to this report.