Small, publicly traded LMP Automotive Holdings Inc. had a goal to roll up dozens of dealerships. It stumbled on a few deals, bought eight franchised stores last year, entered into numerous contracts for more and even purchased a $5.6 million airplane.
But now those deals are collapsing. LMP is exploring alternatives, including selling its portfolio of franchised dealerships and four used-vehicle centers after it was unable to secure financing to close seven pending transactions. Combined, those transactions would have cost the fledgling company more than $296 million.
LMP CEO Samer Tawfik said in a news release Wednesday that the Fort Lauderdale, Fla., retailer planned to terminate those deals, which the company less than two weeks earlier had said would begin closing this month.