Reagor Dykes Auto Group Section 363 Bids Due November 12

AUSTIN, Texas, Nov. 2, 2018 /PRNewswire/ -- The Reagor Dykes Auto Group is being offered for sale pursuant to a Section 363 sale in Chapter 11.  Reagor Dykes' accolades include being the largest auto dealership group in West Texas in 2017 by sales volume, top 150 in new vehicle sales and top 100 in pre-owned vehicle sales in the US in 2017 per Automotive News, top 5 in e-commerce sales in the US in 2016 and 2017 per Wards Auto Dealer Magazine, winner of the President's Award at their Ford dealerships and winner of 2 GM Mark of Excellence Awards in 2017.   

Reagor Dykes filed a voluntary Ch. 11 petition in the US Bankruptcy Court for the Northern District of Texas on August 1.  Blackbriar Advisors out of Dallas, Texas has been retained as Chief Restructuring Officer, and Elm Advisors of Austin, Texas is acting as the financial advisor on the matter.

Based in Lubbock, Texas—with a metropolitan area of 300,000 residents and the home of Texas Tech University—Reagor Dykes owns and operates seven new-car dealerships, multiple used-car operations, and collision and service centers across West Texas and from Amarillo (MSA of approximately 250,000) down to the Midland/ Odessa area, which has more than 200,000 residents and is the epicenter of the Permian Basin energy business.

In 2017 Reagor Dykes sold nearly $800 million of cars and trucks from its stores, which consist of two Ford, two GM, one Toyota, and two Mitsubishi stores.  Affiliates of the Reagor Dykes Auto Group also own a substantial amount of real estate, including multiple dealership locations.

There is currently a stalking-horse offer in place, and bids are being accepted for both the entire group as well as for individual stores.  Bids are due by November 12, 2018, and will be entertained as well for the real estate.  Qualified buyers must have (i) the demonstrable financial wherewithal to close on any proposed transaction, (ii) significant auto dealer experience, and (iii) the demonstrated ability to get approved by the manufacturer or manufacturers.

Bids are due November 12.

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SOURCE Elm Advisors