The McGavock deal isn't the first acquisition to be terminated for the fledgling retailer.
In a January regulatory filing, LMP said its planned acquisition of a Hyundai dealership in West Virginia was terminated, on Dec. 31, according to terms in its purchase agreement. LMP in that filing said "the company did not incur any material termination penalties pursuant to such termination."
In December 2020, LMP's first planned franchised dealership acquisition was scuttled after LMP and the seller agreed to terminate LMP's agreement to buy a 75 percent stake in a Toyota dealership in Georgia. That deal was announced in July 2020.
LMP's highest-profile deal to date — the planned purchase of a 70 percent stake in 16 Atlantic Automotive Group dealerships in New York announced in October 2020 — was slimmed down to an eight-store deal and then canceled in February 2021.
The company has announced seven other acquisitions that it had said were slated to close in the fourth quarter of 2021. In the Feb. 3 news release, Tawfik said LMP expects beginning this month to "close substantially all the remaining seven acquisitions under contract in the first quarter of this year on a rolling basis, subject to customary closing conditions, financing and manufacturer approvals."
LMP COO Richard Aldahan last week referred to the company's Feb. 3 news release when asked about its pending acquisitions.
In late December, Tawfik had said in a news release that LMP had "engaged Bank of America" to help it refinance debt.
Tawfik, in the Feb. 3 news release, said his company is continuing to work with "prospective lenders to provide the necessary debt financing to consummate these acquisitions."