MEMPHIS, Tenn. — American Car Center, the Memphis-based used car dealer which suddenly closed all locations in February, has officially filed for bankruptcy in a Delaware court.
According to federal court records, the company, also known as RAC Dealership, LLC, filed for Chapter 7 bankruptcy in the Delaware Bankruptcy Court on March 14.
Chapter 7 bankruptcy is filed without the requirement of a repayment plan, and as such, involves the bankruptcy trustee gathering and selling the assets of the person or business filing bankruptcy.
According to American Car Center's bankruptcy petition, the company has between 1,000 and 5,000 creditors to pay out, with between $50 million and $100 million in assets and that same value range in debt.
American Car Center’s website lists more than 40 locations mainly across the southeast.
The Tennessee State Department of Labor also has a notice on its website saying the agency was notified of a permanent closure on Feb. 24.
A message on American Car Center's website tells customers their payments are now being handled by Westlake Portfolio Management, who will also handle all lease-related customer service needs.
These are the options they listed for customers to continue to make payments:
- Pay online through the payment portal
- Pay by phone by calling (877) 720-4477
- Pay in person at a CheckFreePay location
An apology was also included in the message; they also mentioned updates would be posted on the website.
