LMP Automotive Holdings Inc., founded in late 2017 as a vehicle subscription provider, went public in December 2019 and bought its first franchised dealerships in March 2021 before seeing its ambitious growth plans start to unravel.
When LMP started buying new-vehicle stores, it joined the ranks of just six other publicly traded new-vehicle retailers. A few publicly owned conglomerates also have dealership holdings.
LMP, of Fort Lauderdale, Fla., had plans to acquire 80 to 100 dealerships by the end of 2022. But after challenges obtaining financing and closing deals, that ambition has collapsed, and the company now appears headed toward dissolution.
Automotive News will continue to watch LMP and its financial status and update this timeline.
July 2020: LMP announces a plan to acquire 75 percent of a Toyota store in Georgia in what would be its first purchase of a franchised dealership. The deal fell through by December 2020.
September: LMP CEO Samer Tawfik says the company has signed agreements to buy all or part of nine franchised dealerships. Tawfik said LMP could have as many as 50 dealerships in its portfolio or under contract within a year.
Oct. 20: LMP says it entered into an agreement to buy a 70 percent stake in Atlantic Automotive Group, with 16 franchised dealerships in New York.
Jan. 13, 2021: LMP says it trimmed the size of its planned acquisition of a stake in Atlantic Automotive to eight dealerships, citing "geographic concentration issues."
Feb. 11: LMP announces that it and Atlantic Automotive mutually agreed to terminate the scaled-back acquisition.
March: LMP closes on the acquisitions of its first five franchised dealerships — two Kia stores in Florida and three stores in West Virginia. It also buys a General Motors dealership in Tennessee, says it had entered contracts to buy majority stakes in two New York Stellantis dealerships and announces plans to add 80 to 100 dealerships by the end of 2022.
May: LMP buys an 85 percent stake in a Subaru dealership in West Virginia.
July: LMP says it has signed agreements to buy four franchised dealerships in Texas, Connecticut and New York.
August: The retailer says it entered a contract to buy a Kia dealership in New York.
September: LMP announces it entered into separate contracts to buy a majority stake in 10 franchised dealerships in Florida and to buy five import-brand dealerships in Texas.
Oct. 7: LMP buys a majority stake in one Stellantis dealership in New York.
December: Tawfik says in a news release that LMP had "engaged Bank of America" to help it refinance debt.
2022
January 2022: In a regulatory filing, LMP says its planned acquisition of a Hyundai dealership in West Virginia was terminated on Dec. 31, 2021.
Feb. 3: LMP, in a regulatory filing, says the seller in its proposed acquisition of five import-brand dealerships in Texas will keep a $1.5 million deposit per terms of the contract, which was terminated Jan. 31.
Feb. 16: LMP says it plans to terminate seven pending purchases of numerous dealerships across New York, Tennessee, Connecticut, Florida and Texas and that it is considering a sale of the company.
March: LMP says it lost a $2 million-plus deposit after its deal to buy an 85 percent stake in 10 franchised dealerships in Florida was terminated in February. The retailer also says it will sell its corporate jet, acquired just months earlier. By month end, a Kia dealership files a lawsuit against LMP, seeking a $100,000 deposit after a failed acquisition.
May 27: An LMP shareholder files a federal lawsuit against the company and certain executives and seeks class-action status. The lawsuit follows the company's announcement that it would restate its financial results for the first three quarters of 2021. LMP also files a lawsuit that day in federal court in Albany, N.Y., against the owner of a Stellantis dealership in Clifton Park, N.Y., seeking the return of the $1 million deposit LMP made for an acquisition later terminated.
June: LMP says it sold property in Plantation, Fla., for about $4 million, according to a regulatory filing. It also files a lawsuit against dealership owners in federal court in Texas, seeking the return of a $2 million deposit made in a transaction that ultimately was terminated.
July 14: LMP, in a regulatory filing, says it terminated CFO Robert Bellaflores. Bellaflores was named CFO in July 2021.
July 15: LMP signs an agreement to sell its Chrysler-Dodge-Jeep-Ram store in White Plains, N.Y., to TAG Holdings of Rhode Island, according to a regulatory filing.
Aug. 5: LMP makes agreements with Atlantic Coast Automotive to sell its Florida Kia dealerships in Port Charlotte and Cape Coral, plus Kia and Subaru stores in Mount Hope, W.Va., a Chevrolet dealership in Oak Hill, W.Va., and a Buick-GMC store in Beckley, W.Va. LMP, in a regulatory filing, says it anticipates cash proceeds of $133 million from the deal, which is slated to close by Oct. 31.
Aug. 8: LMP issues a press release announcing the company's board of directors has unanimously recommended that stockholders approve a proposed plan to liquidate and dissolve the company at its next special meeting of stockholders. LMP does not indicate when the meeting is to take place.
Aug. 12: LMP says it will notify the U.S. Securities and Exchange Commission that it has told the Nasdaq exchange of its intention to voluntarily delist its common stock. It expects the delisting to be effective by about Aug. 25, according to a press release and regulatory filing.
Aug. 16: LMP, in a regulatory filing and news release, gave notice of a late filing for second-quarter earnings as it continues evaluate the “proper identification and elimination of intercompany transactions” and estimate chargebacks for finance and insurance products, among various reasons. The company, in the news release, said it intends to release full-year 2021 and first-quarter 2022 financials and file required quarterly regulatory filings through the second quarter of 2022 “as soon as reasonably practicable.”
Aug. 22: LMP files with the SEC its notification of voluntary removal from listing its shares on the Nasdaq Capital Market. Its shares, under LMPX, now are traded over the counter.
Sept. 14: LMP said in a news release that it has entered into agreements to sell its dealership and related real estate in Greeneville, Tenn., marking the last of its new-vehicle dealerships that are slated to be sold. The company acquired Bachman-Bernard Chevrolet-Buick-GMC-Cadillac in Greeneville in March 2021. LMP, which did not identify the buyer for the store, said it expects to close on the dealership sale in November, pending several closing conditions including obtaining regulatory approval.
Oct. 5: LMP said in a news release that its pending sale of six dealerships across Florida and West Virginia has been terminated. LMP said the buyer, revealed as Atlantic Coast Automotive Group in an August regulatory filing, terminated the dealership and real estate asset sale agreements. It was not clear why or when the deal was terminated.
Oct. 18: LMP sells White Plains Chrysler-Dodge-Jeep-Ram in White Plains, N.Y., to Tasca Automotive Group.
Nov. 9: LMP, in a press release, says it has closed on the sale of Bachman-Bernard Chevrolet-Buick-GMC-Cadillac in Greeneville, Tenn. LMP did not indicate when the transaction closed or who the buyer was of that store.
Dec. 15: LMP sells Kia of Cape Coral and Kia of Port Charlotte to Morgan Automotive Group.
Dec. 19: LMP, in a press release, says it in December signed definitive agreements to sell a Subaru store and a Kia store in Mount Hope, W.Va. LMP did not indicate if the stores are being sold together or separately and did not name a buyer or buyers. LMP did, however, note that the agreements are expected to close in March 2023. The auto retailer said it is marketing its two remaining franchised dealerships, a Chevrolet dealership in Oak Hill, W.Va., and a Buick-GMC store in Beckley, W.Va. LMP also said it is moving forward with its liquidation plan and plans to make "a partial distribution to the shareholders of record beginning in January 2023."
2023
Jan. 4, 2023: Richard Aldahan, in a group email to his contacts, says he has resigned as LMP's COO. It's not clear when Aldahan's resignation became effective. LMP had announced Aldahan's appointment as COO in July 2020.
Feb. 9: LMP, in a press release, declares a special cash dividend of $4.68 per share. LMP said it anticipated paying the dividend on Feb. 28 to all stockholders of record as of Feb. 13.
March 20: LMP, in a press release, says it has signed definitive agreements to sell a Chevrolet store in Oak Hill, W.Va. and a Buick-GMC store in Beckley, W.Va. The two stores are believed to be its last franchised dealerships.
LMP did not indicate if the stores are being sold together or separately and did not name a buyer or buyers. LMP did, however, note that the agreements are expected to close in June.
March 30: LMP sold Hometown Subaru and Hometown Kia, both in Mt. Hope, W.Va., to Friendship Family of Dealerships, of Bristol, Tenn., according to Mitch Walters, the group's president.
May 4: LMP, in a press release, declares a special cash dividend of $1.24 per share. LMP said it anticipated paying the dividend on May 8 to all stockholders of record as of April 29.
June 12: LMP sold King Coal Chevrolet in Oak Hill, W.Va., to Stephens Automotive Group, according to Chase Barton, the group’s operations manager.
June 13: LMP sold Beckley Buick-GMC Auto Mall in Beckley, W.Va., to Dutch Miller Auto Group, according to Chris Miller, the group’s president.
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