Car Toys Inc, a 38-year-old Washington based specialty retailer is planning on selling the majority of its stores to a combination of tenured employees and local competitors. Car Toys has commenced a voluntary Chapter 11 proceeding in Seattle bankruptcy court to facilitate these transactions, to maximize its business value for the benefit of its creditors, preserve and maximize job opportunities for its employees and support business continuity for its customers.
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. This plan will provide jobs for the majority of the Car Toys employees and deliver customer service continuity for its highly valued customers in each of its existing markets.
As the largest independent car audio and electronics retailer in the United States, Car Toys built its reputation on outstanding customer service, a superior selection, competitive prices and the best installers in the country.
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.”
Subject to bankruptcy court approval, we intend to sell stores to:
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. You may also contact TeamCTI@stretto.com for additional information.