CARS STRANDED AS M2 FAILS.

Byline: Brent Hopkins Staff Writer

The sudden failure of one of the state's largest auto body chains left 2,000 cars stranded in repair lots, but liquidators hope to have them back in owners' hands as soon as today.

M2 Automotive Inc. shuttered its 27 repair shops earlier this week after a last-minute buyout bid fell through, trapping cars in various states of repair and leaving customers irate. Guards have been standing watch over lots all week as Burbank-based liquidator CMA Business Credit Services has been scrambling to put together an auction to sell the chain's assets and return cars to their owners.

``It's a train wreck,'' said Bob Hoder, CMA's vice president. ``People are afraid we're going to sell their cars. We know perfectly well the vehicles don't belong to the company, so we're just protecting them until we can get some new owners in there to give them back.''

Santa Monica-based M2 had been in financial trouble for some time, entering into an agreement with Irvine-based Caliber Collision Centers on March 28 to sell the majority of its assets. The companies were unable to reach an agreement and Caliber terminated the deal last Friday.

Hoder said M2 entered into general assignment for benefit of creditors, a process similar to bankruptcy, over the weekend. Its 700 workers were able to pick up their tools this week, but got little advance notice of the shutdown.

``It caught them by surprise,'' said David Yacobi, owner of a frame shop next to the Van Nuys location. ``On Friday, they got their checks and were told, You'd better cash them as soon as possible.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com