In a late January blog posing, we noted that more than 1,000 GM dealerships intended to take post-bankruptcy General Motors to arbitration over the reorganized automaker’s controversial decision to drop their franchises from the sales network. In a new development, GM has decided to reinstate about 600 of them without the need for arbitration. The dealerships left out in the cold, however, still retain the right to their arbitration hearing scheduled to begin later this month.
At this writing, there is no word as to how many Wisconsin dealerships will have the option to keep their doors open. According to the Associated Press, “[GM] said it chose the 661 based on a variety of criteria, including sales and other business factors. The company said it hoped to have every letter of intent with dealerships by Monday. At that point, dealers have 10 days to respond and 60 days to meet a set of criteria that would allow them to stay with GM.” It’s unclear right now whether Chrysler will follow suit with a partial reinstatement of some of its affiliated showrooms.
GM filed for Chapter 11 bankruptcy protection on June 1, 2009–the fourth largest bankruptcy in U.S. history and the largest for an industrial corporation. The smaller, reorganized company came out of bankruptcy as General Motors Company LLC (“the new GM”) about 40 days later, with the federal government owning a 60 percent stake.
A colossus like GM is obviously not the only company that has sought bankruptcy protection in the last year. Businesses large and small, as well as individuals who may be down on their luck, can rebound from financial challenges with the help of a Wisconsin bankruptcy lawyer. A skilled bankruptcy attorney in Milwaukee can present you with options and answer any of your Wisconsin bankruptcy questions.