DOTHAN, Alabama, July 2, 2014 – Dothan Motor Company, Inc. (Company) today announced that it has commenced a structured liquidation in order to facilitate an orderly wind-down of its operations.
Motor Company will remain open for processing customer payments. The Company expects to liquidate its inventory in early July.
Since the death of its owner, Todd Smith, Dothan Motor Company, together with its financial and legal advisors, has engaged in a thorough analysis of all potential alternative, including a sale of the Company. Ultimately, the Company and its advisors were unable to find a potential buyer for the Company or a source of capital to provide adequate liquidity to fund the Company's ongoing initiatives. As a result, the Company's advisors determined that an orderly liquidation of the business would be the best way to maximize value for the benefit of the Company's creditors.
"We are extremely grateful to all of our employees for over sixty years of dedicated service to Dothan Motor Company, and to the thousands of loyal customers,” said Lori Smith, wife of the owner.
In an effort to maximize creditor recoveries and reduce administrative expenses through a swift and efficient structured liquidation process, Dothan Motor Company has reached an agreement with its lenders. Any additional claims should be submitted according to Alabama protocol. Employees are receiving help in transitioning to other job opportunities.