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.
I’ve read through all the comments and agree with many of the positive ones. Dan built a car audio empire that pushed a lot of dealers to raise the bar on customer experience. As the industry shifted with new products and changing trends, Car Toys made the right moves to adapt and stay relevant. Car Toys created a lot of successful mobile electronics people. I wish nothing but the best for Dan.
Good luck to all those new and old Car Toys location owners.
I am sad to hear of this news. Dan is an amazing person and I have been lucky to have known him a long time. I hope the new endeavor works out for everyone, and I hope Dan can retire and enjoy life for a while . A lot has changed business wise, and hopefully whoever aquires the businesses will have much success
It seems like Car Toys has always been a big part of my life…
Starting way back in the 90s at MTi, when Dan found a mountain of used home audio switching and asked how to use it in building car audio rooms for his big expansion. Together, we engineered a solution that worked out great.
Then came my first day working at Jensen, right in the middle of a Portland tent sale, scrambling to find hundreds of stereos because we sold out too fast.
When we started the brand Dual, Car Toys was one of our very first big customers, and boy did we have some fun building a brand together.
My connection with Car Toys went on to flourish as I spent almost twenty years fully aligned while at Kenwood before building a marketing company over the past two years through their continued support.
The experiences were epic at times, and winning five consecutive Vendor of the Year Awards was thrilling, but developing close friendships that will endure will be my biggest takeaway.
I’m so excited about the next chapter for all five new ownership groups and look forward to seeing how everything plays out.
One thing I do know: the guy purchasing the stores in Seattle and Denver will be a true leader for hundreds of people I care about. Alongside Angela, they make a great team with hands-on retail experience, creativity, and drive.
I’ve watched Ed grow over the past thirty years of friendship and know his character, instincts, self-discipline, and kindness to be unmatched.
When one of my vendors asked about Ed this week, I simply said: “Go to one of his company Christmas parties, and you’ll hear stories of thoughtful gestures towards the people who work for him, and see examples of his leadership. There will be moments of raw emotion, like seeing him wipe away tears as he recognizes someone or presents a check with the money he quietly raised in a time of need. By the end of the night, you will tear up at least three times, because I sure did.”
There are great people everywhere you look with the other groups buying stores, seasoned existing dealers and talented folks who have helped shape the Car Toys culture for years.
I’m genuinely excited to see how the Car Toys story continues to unfold.
Two things must be recognized:
1. The unwavering loyalty of Jennifer JQ Quesada to the very end. The job demanded far more than she should ever have been asked to give, and she just kept giving. She was always the glue and sacrificed so much for others over the years. That matters. And one Hell of a Free Agent of you ask me.
2. The grace in which Barb Erni carried the weight of the world over the past 18 months. I’ve never seen someone step into a role and so quickly grasp every nuance, then create immediate positive change. The best I’ve ever worked with. We just couldnt outrun it.
Cheers Dan, it’s been one hell of a ride my friend!
Well said, Rob! You really captured it. While definitely a sad day in so many respects I am very excited about the next chapter of “Car Toys”. There will be a fresh vision and new opportunities — and it’s so great that the 400 employees still have very nice jobs. Live long and prosper Team Car Toys!
It certainly seems like days of Multi store chains are becoming more and more a thing of the past. To make it now a days you need to become a specialist like never before. That really can’t be done unless you’re experienced and hands on. You can’t just hire a college kid for sales like in the past and expect them to handle the sale of a dsp/integration install or expect them to put the effort in that this business needs now more than ever. Car audio isn’t technically going anywhere, but the ones the who still be standing will be specialized shops, not retail stores!
Seems like Troy and Chris are buying a dozen in Texas, Foss is adding 15 to the 5 (or 6) stores he already has. Seems like at least for those two, they see the (bigger) multi-store chain as a viable option.
The 15+ years i worked at Car Toys moving from a CSE to eventually Accounting Manager provided me the tools i use today as an Accounting Consultant. I couldn’t have learned that ground up business understanding if there weren’t the opportunity to move up within the company, which i will always be grateful for.
It also provided me with years of real world experiences in crisis management and problem solving. I discovered that I actually thrived in choas, which also helps as a consultant.
Ultimately, it is a sad day. I’m sure some people will say “the writing was on the wall”, but after years of living in that type of uncertainty, it is still shocking when it finally happens.
I have always loved Car Toys, Car Audio, and my former coworkers in the field. Best of luck to the employees who were surprised by this announcement today.
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.
bingo, i’m looking for my way out currently.
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.