Car Toys Inc, the 47-store, Seattle based car audio chain, announced it has entered into a voluntary Chapter 11 proceeding and plans to sell the majority of its stores to multiple buyers.
The 38-year old chain plans to sell stores to a combination of tenured employees and local competitors. Chapter 11 is a section of US bankruptcy that allows financially distressed businesses to reorganize financially, while continuing to operate with the goal of becoming financially stable again.
Car Toys plans to conclude an asset sale of 35 of its stores to five different parties consisting of highly tenured employees and regional competitors, it said.
Car Toys said it filed Chapter 11 in Seattle for the court to facilitate the sale of the stores, to maximize its business value to its creditors, preserve job opportunities for its employees and to continue to serve its customers. It hopes to continue to provide jobs for the majority of Car Toys employees, it said in a press statement.
Car Toys is the largest independent car audio and electronics retailer in the US.
Founder and Chairman Dan Brettler stated, “The Car Toys family has had an incredible journey the last thirty-eight years with our employees, our customers and the communities we serve. While we find ourselves in a less-than-ideal chapter, I am extremely proud of my team and pleased that the Car Toys brand, the majority of our jobs and our outstanding customer service and installation, will continue in all of the markets that we serve.”
Buyers of the Car Toys locations (subject to bankruptcy court approval) include:
Foss Audio and Tint will be purchasing six of ten stores in Northern Colorado, eight of twelve stores in Western Washington and the Upfitting Facility in Portland, Oregon.
Troy Parcels (27-year Car Toys veteran) and Chris Pritts (14-years) will be purchasing eight of twelve stores in the Dallas-Ft. Worth market and all four stores in the Houston market.
Don Longworth (16-year Car Toys veteran) and Raul Shakarov (25-years) will be purchasing five of six stores in the Oregon market.
Drive-In Autosound, will be purchasing the Colorado Springs North location.
Selway Sound dba Aspen Sound will be purchasing both locations in Spokane, Washington.
Car Toys, Inc. is advised in this matter by Cairncross & Hempelmann PA, as legal counsel, and SierraConstellation Partners, as company CRO and financial advisor.
Information about the Car Toys Chapter 11 case can be found on the following website: https://cases.stretto.com/CTI. [email protected] may also be contacted for additional information.
Thanks Dan for the opportunity to serve the company you were amazing to us all . I served 16yrs Ja577 . My Life is better because of CT . Would have never meet my Wifey without CT
Dan, you are amazing! I enjoyed my time with the company and the cutting edge that was shared with us all. Good luck in your future endeavors.
Congrats Dan!! CT has been a wonderful journey and i would like to personally thank you for your vision and drive. You really did make a difference in the industry. You employed thousands of folks through the years and provided tremendous opportunity for them and the vendor community alike. For me it was mortgage payments, kids college tuitions and the wonderful relationships created through the years….
Thank you again and enjoy your next chapter in life.
Bitter sweet day. Enjoyed 22 years with CT and learned a lot about business and leadership. Glad I left 10 years ago when it was still a leader in the space. Wish everyone there the best and hope the new owners can make these locations successful.
I hope the new owners will see lots of success in their endeavors. Dan was a highly successful guy for a long time and brought lots of awareness to our industry that we love.
Car Toys is a prime example of the Canary in the coal mine. The old days are over… So glad I’ve already retired. Hopefully everybody else can find an appropriate exit strategy for the game that’s been over for a while now.
Dan tanked this company and mismanaged everything. By not leaning in and listening to the boots on the ground he hired a bunch of yes people. He burnt all his wireless advocates employees and now his CT employees
WOW! I worked for Car Toys for many years, It was a great company run very well. I guess you can’t get around a changing markets. Good luck to all the employees and congrats to Foss And the other new owners.
Good luck to all of the purchasers and congratulations to Dan Brettler and his many years of success!
Through the years Car Toys has been a business machine to be admired. Always seeming to lean in and arrive one or two steps ahead of the crowd. I hope and trust that Brettler can hold his head high and walk through the future knowing he is a good guy who has had a positive impact on a lot of people.