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Millions in debt forces dealership to file for Chapter 11

By Celinda Emison / emisonc@reporternews.com
July 29, 2006

A Brownwood Ford dealership in operation for the past 93 years has filed for Chapter 11 bankruptcy.
Brownwood Ford-Lincoln-Mercury filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District in Dallas on July 19.
The doors remain open and the owner, listed on the bankruptcy documents as Mark Barrow of Abilene, has put the business up for sale, said to Joyce Lindauer, attorney for Brownwood Ford.
''The dealership is trying to stay in business,'' Lindauer said.
Lindauer added that Ford Motor Credit is working with the dealership to keep the business open as well.
None of the 46 employees is expected to be laid off, she said.
The dealership will continue to provide products and will honor all service/maintenance agreements on automobiles sold there.
''The main thing is we are trying to find someone interested in purchasing the dealership,'' Lindauer said.
According to the bankruptcy documents, Brownwood Ford has between 100-199 creditors and is between $1 million and $10 million in debt.
A Chapter 11 filing is an attempt to stay in business while the bankruptcy court supervises the reorganization of the company's contractual and debt obligations.

Dearlership history

The Ford dealership in Brownwood was established in 1913 with original founders John N. Weatherby and E.M. Boone. Weatherby later bought out Boone.
Weatherby died in 1921, and the franchise control moved to his widow, who sold 50 percent of the franchise to her brother-in-law, E. J. Weatherby.
In 1924, the Weatherby Motor Company of Brownwood opened with the original buildings erected between 1926 and 1929.
In 1932, John N. Weatherby Jr. joined the company
By 1940, John N. Weatherby Jr. bought out his uncle's 50 percent share as well as his mother's and sister's interests.
Source: Texas Tech University archives

source: http://www.reporter-news.com/abil/nw_business/article/0,1874,ABIL_7948_4878717,00.html