Car Toys filed for Chapter 11 bankruptcy on Aug. 18, announcing that the company will sell a majority of its stores to tenured employees and local competitors.
The 38-year-old Washington car accessory retailer began a voluntary Chapter 11 proceeding in Seattle’s bankruptcy court to facilitate the asset sale of 35 of its stores.
Car Toys files for bankruptcy
The stores are planned to be sold to five different parties consisting of highly tenured employees and regional competitors. The move will employ a majority of Car Toys workers and continue to provide service for customers in each of its existing markets.
“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,” Car Toys Founder and Chairman Dan Brettler stated…