An automotive accessories retailer has declared Chapter 11 bankruptcy while planning to sell dozens of physical locations.
Car Toys, an Auburn, Washington-based manufacturer of vehicle components, sought bankruptcy protection last week. The business intends to restructure and dispose of most of its outlets to settle accumulating debt, according to the Seattle Times.
Multiple companies spanning different industries have declared bankruptcy in recent weeks. Italian restaurant chain Bravo Brio Restaurants LLC became the most recent to file, seeking protections to strengthen its financial standing. Drugstore chain Rite Aid similarly declared bankruptcy while planning to close numerous locations.
Car Toys’ website describes itself as the “largest independent multi-channel specialty car audio and mobile electronics retailer in America.”
The company operates 48 locations nationwide and intends to sell 35 across five states for $14 million.
Patrons may continue using gift cards and coupons through Oct. 18, the business announced. Following that date, the gift card program will cease entirely, including at remaining open locations.
Gift cards are no longer available for purchase in stores or online.
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While most locations will be sold, Car Toys aims to avoid complete closure.
Founder and chairperson Dan Brettler stated in a press release, “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.”
The store specializes in selling stereos, subwoofers, alarms, and other car parts, while also providing services such as car detailing and window tinting.
Car Toys has branches across several states, including Washington, Oregon, Colorado, and Texas.