DOLPHINS TEAM OWNER OUTBIDS OTHERS FOR MAGIC DEALERSHIPS.Byline: Deborah Adamson and Dave McNary Daily News Staff Writers A company controlled by the owner of the Miami Dolphins football team submitted the winning bid Tuesday for two Valencia car dealerships This article is about car dealerships. For the indie pop band, see Dealership (band). A car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or in bankruptcy, Magic Ford and Magic Lincoln-Mercury. Magic Acquisitions Corp., a unit of Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.-based Republic Industries, agreed to pay $15.86 million for goodwill - compensation for the good name of the Magic dealerships - plus buy hard assets such as the cars, machinery and furniture that are currently appraised at $5 million. Magic Acquisitions - controlled by H. Wayne Huizenga Harry Wayne Huizenga (born on December 29, 1937 in Evergreen Park, Illinois) is an American businessman who has built several companies into multi-billion dollar enterprises, mostly through an aggressive process of acquisitions. - beat out Grapevine Grapevine - A distributed system project. Motors Inc., a unit recently formed by Ford Motor Co., to purchase the dealerships. Grapevine's last bid was $15.61 million. The oral bidding lasted a few tense minutes as the two companies raised each other's bids by increments of $250,000. But the deal won't be final until Jan. 28. Magic Acquisitions has to submit its recommendations for general managers of the two dealerships, which Ford Motor Co. has to approve. If Ford does not approve the choices and the deal falls through, Grapevine is the backup buyer of the businesses. ``These are strong dealerships,'' said Thomas Butler Thomas Butler may refer to any of the following persons:
He said the company does not have firm plans yet for the businesses. But he does not discount the idea that these might become ``one-price'' dealerships. Republic recently bought a Ford Lincoln-Mercury dealership with locations in Ohio and Florida and a Dodge dealership in Arizona. Like Saturn dealerships, they sell vehicles at set prices, which they claim are already discounted. The sale will generate about $20 million, which will be used to pay off about the same amount in debt to Ford Motor Credit Corp. Unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. - owed to suppliers and such - of $4 million is expected to be paid by selling the property on which the dealerships sit. Norman J. Gray, former owner of the dealerships, owns the land. The trustee's office pegs the value at about $18.5 million. On Sept. 24, Magic Ford and Magic Lincoln-Mercury in Valencia filed for Chapter 11 bankruptcy in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . They had gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. of $230 million in 1995 and sell up to 1,000 vehicles a month with a payroll of $15.7 million annually. The 350-employee dealerships remain open during the reorganization. The sale had an initial round of bidding, which attracted six parties. They were Cal Worthington Calvin Coolidge Worthington (born November 27, 1920 in Shidler, Oklahoma ) is a well-known car dealer throughout the West Coast of the United States. He is best known for his unique radio and television advertisements for the Worthington Dealership Group. ; the Cutter team from Honolulu; D.O.C.S. of Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. ; Pomeroy Investment from Rochester, Mich.; Magic Acquisition, and Grapevine Motors. Burt Boeckmann's Galpin Motors Inc. showed initial interest but did not complete the application process, the trustee's office said. The bidding eventually narrowed to two - Huizenga and Ford. Huizenga has shaken up the car retailing industry by starting a chain of used-car superstores This is a list of superstores by country. Multi-national
Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. Rent-A-Car two months ago and recently agreed to buy National Car Rental for $2.3 billion to help supply his car lots as part of a goal to provide ``cradle to grave'' transportation services. Huizenga first became a tycoon in the trash-hauling business and then built video-rental giant Blockbuster Entertainment Corp., which was sold to Viacom Inc. in 1994 for $7 billion. Jack Kyser, an economist with the Economic Development Corp. of Los Angeles County, said the purchase of Magic Ford by Huizenga underscores the ongoing consolidation in the auto retailing business. ``In some ways, Huizenga coming to Los Angeles is as much a major change in the auto industry as the O'Malleys selling the Dodgers,'' he said. ``There used to be a lot of little players, but now you have some pretty sizable operations.'' Boeckmann, who had decided not to go through the bidding process, said he would take a ``wait and see'' attitude toward Huizenga's operations. ``He's got some good people working for him and he's playing a bigger game,'' Boeckmann said. ``I'm sure he wouldn't be getting involved if he didn't think he would succeed.'' |
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