Autobacs Strauss filed for Chapter 11 bankruptcy protection in a Delaware court on Wednesday, according to a recent Reuters report.
The company, which operates retail store locations in New York, New Jersey and Pennsylvania, listed assets of about $75 million and liabilities of about $72 million, according to court filings.
Japanese big box retailer Autobacs Seven acquired Strauss Discount Auto out of bankruptcy protection for about $55 million in 2007. The business was renamed Autobacs Strauss at that time.
In December, Autobacs Seven said it was no longer willing to provide additional working capital, according to the Reuters report. Earlier this month, Autobacs Seven gave a written notification to Autobacs Strauss, saying the loan agreements were in default and declared all sums due and immediately payable.
The company owes Autobacs Seven about $42.4 million, according to court filings.
The South River, New Jersey-based Autobacs Strauss said it employs about 1,450 people and that it plans to use the Chapter 11 process to emerge as a cash flow positive entity.
Editor’s Note: Strauss Autobacs was listed as No. 14 on the Counterman magazine Top 20 Superstores list in 2008, with 91 stores and one distribution center location. The 2009 Superstores list will be published in the February issue of Counterman magazine. Stay tuned for more information on Strauss Autobacs’ filing as it unfolds.