In an SEC filing made yesterday on March 25th, Atlanta-based Asbury Automotive Group terminated its $1 billion purchase agreement of 14 luxury Park Place Dealerships which represent brands like Mercedes-Benz, Porsche, and Maserati to name a few. The sale, which was originally planned to be finalized at the end of March, was reportedly called off due to economic concerns around the COVID-19 outbreak.

“We will continue to do what we have done best for the past 33 years,” said Ken Schnitzer, founder and Chairman of Park Place Dealerships, “Now more than ever, we remain committed to creating exceptional experiences for our clients, relying on the talent within our organization, and, most importantly, keeping everyone safe”.

During initial negotiations, Asbury CEO David Hult said the acquisition represented about $2 billion in expected annual revenues. Three stores in the Park Place group are among the Top 10 U.S. dealerships for their respective brands, namely Mercedes-Benz, Porsche, and Bentley.

Forbes also reports that Asbury upped its borrowing, also in reaction to the pandemic. Asbury is one of the largest automotive retailers in the U.S. market. Its 2018 revenues were around $6.9 billion. The group has 88 dealerships.

Stayed tuned for more updates on this developing story.

2 COMMENTS

  1. They dodged a bullet, imo. Park place is a fucking joke and they dont give a shit about the employees. They did a mass layoff today and everyone was notified via phone. A PHONE CALL. After being made to work all day, the decision was made about their job DAYS ago. They got a call, and was read a bullshit script about covid 19. Employees that had been here for 20+ years, just let go with no warning, and no respect. Park Place is a ‘family company’ yea right, in my experience, its always been family that is first to fuck you over. Well today, Park Place NAILED it. Top 5 places to work In DFW, multiple years in a row, what a fucking joke.

  2. You nailed it in your comments my friend. What a bunch of hypocrites – terrible treatment of employees needs to make the mainstream news. Every day pushing integrity and then totally fuck everyone over. Even banked $10M + after Asbury pulled out.
    Every one of their customers needs to know about this! Covid-19 very convenient for them to dump 20% of their work force.

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