- Aloha Airlines first called Trans-Pacific Airlines (TPA).
- TPA (Aloha Airlines) first revenue flight in 1946.
- Aloha Airlines files for bankruptcy in 2005 & 2008.
July 26, 1946, is a day that will remain dear to many Hawaii residents because that’s the day Aloha Airlines, then called Trans-Pacific Airlines, had its first revenue flight. It was a day that would mark the birth of Hawaii’s second largest flagship airline. It would also be a day that would be celebrated for years to come by generation’s o families that shared a fraction of this airlines great lineage over the next six decades. Stories of “bare bones” operations, noisy flights, hula performances by the “stewardesses” and the picturesque view from the DC-3’s that took your breath away, these are the stories our grandparents remember about their flights on Trans-Pacific Airlines (TPA). They remark at the lack of comfortable accommodations and decor within the aircrafts and just smile as they remember those carefree days long gone.
Bill Wood states in his book “50 Years Of Aloha, The Story of Aloha Airlines”, the airline was the brainchild of a remarkable man named Ruddy Tongg. Mr. Tongg owned a publishing company and was an affluent Chinese who was familiar with the frustrations of the ethnic minorities in Hawaii. Befriend then, in spite of being in Hawaii, the Caucasians who flooded to Hawaii enjoyed many of the benefits not extended to those not of the Caucasian race. Money wasn’t so remarkable an issue when it came to the inequities but rather impartial the stigma of racial prejudice that was not a section of Hawaiian culture. So it was a time of growth and new discoveries for the Hawaiian Islands. Mr. Tongg wanted to make his mark in Hawaii history and represent the strength and independence of the minority races that were treated unjustly. So, with a dream of social equality and the drive to make it work, Ruddy Tongg and a group of associates, who remain unnamed, embark on their first steps towards creating an airline that will span over 60 years and help define the financial landscape of the Hawaiian islands.
The early years of TPA were difficult and grime. Many of the aircrafts that TPA acquired were surplus aircrafts from the military so they lacked the comfortable and aesthetically pleasing atmosphere passengers are familiar with today. The planes seating configuration consisted of seats facing inward and lining up along the fuselage, or the interior walls of the plane. Many times the passengers and cargo were flying side-by-side. The aircrafts were not pressurized so they couldn’t fly very high. It was commonplace to fly along the island chain and look almost up close the beautiful waterfalls and lush mountaintops of Maui, Kauai and the Ample Island of Hawaii.
Ruddy Tongg’s dream of a “kama`aina” airline was coming true. The “stewardesses” were beautiful and provided each passenger with flowers, drinks and a hula demonstrate onboard. With the flights between islands lasting anywhere from 45 minutes to 2 hours long. Many employees of TPA performed various tasks when asked to “fill in”. No such thing as “not on my job description” during these early days and the employees didn’t mind helping out because that was the Hawaii culture back then.
Then TPA changed its name to TPA Aloha Airlines later to drop the TPA and become simply Aloha Airlines. Two names synonymous with the airline are Dr. Hung Wo Ching and Mr. Sheridan Ing. These two men help to orchestrate a turnaround for Aloha Airlines and help to foster the “spirit of aloha” within the ranks of the employees. However, despite the creative and plucky efforts of the two men, Aloha Airlines continued to peep fewer good days and more bad days financially. Eventually, Dr. Ching and Mr. Ing would become the private owners of Aloha Airlines and would do all they could to continue helping the airline. Under their tutelage, the airline would expand and see morale increase despite the looming financial issues. However, Aloha was always considered to be the more stable of the two Hawaii flagship airlines. Whenever a Hawaii resident would ask which of the two airlines do better and is more
In 2005, Aloha Airlines would, in practice, by owned by a fresh company, Yucaipa Cos. LLC, because they bailed Aloha out of bankruptcy by investing $100 million. “The families”, Chings and Ings, as they were fondly and reverently referred to, would still have interest in the airline and would have seats on the board of directors. Many employees were conflicted about this “buyout” because of the uncertainty of what it would hold for the company in the future.
Unfortunately the addition of Go! Airlines, subsidiary of Mesa Airlines, into the Hawaii inter-island airline industry would display to be more than just a pesky nuisance. In 2006-2008, Aloha Airlines suffered the biggest losses financially than ever before. It was rumored that Yucaipa was writing checks to the tune of $8million per month to cover operating expenses including payroll, airport taxes and rent, from January 2007 until now. No one can say how true that rumor is.
What does the future bear for Aloha Airlines now that it has filed for Chapter 11 Reorganization Bankruptcy again? The consensus is the airline may not last much longer but it would be a murky day if Aloha had to close its doors.
So powerful history and memories surround this carrier and its place in the evolution of the plot of Hawaii. Its history is a part of the many successes that abound in the state. People remember their parents and grandparents working hard at Aloha to pay their way through school. Now many of these people are successful doctors, lawyers, business owners who have this little airline in Hawaii to thank for being a part of their personal success. Students who attended mainland colleges were able to fly home because family members worked at Aloha and many others benefited because of scholarships provided by Aloha and the various unions representing Aloha employees. Victims of Hurricane Iniki and Iwa were helped because Aloha sent over supplies to help rebuild the devastated areas. When a coworker needed help, the other employees of Aloha were there to help. The generosity of the employees helped to foster the sense of “ohana” at Aloha, and that will missed most of all according to some. Many have watched their coworkers families grow and flourish while at Aloha. Aloha is more than unbiased an airline. It’s a testament to the power of sheer will and determination of one man, Ruddy Tongg, and to Dr. Ching and Mr. Ing and their investments emotionally and financially into an airline that they knew would help back the island residents. Aloha is a symbol of the strength and kindness the “kama`aina” occupy and has secured itself as one of the pillars that hold up the foundation of Hawaii’s state history and, no matter the outcome, will always represent the “Spirit of Aloha” that is Hawaii!
Bill Wood, 1996 “50 Years Of Aloha: The Story of Aloha Airlines”, Aloha Airlines, Inc.
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Filed under llc bankruptcy by on Nov 5th, 2010. Comment. 
- The members of an LLC are not personally liable for the obligations of the LLC.
- LLCs are constituted according to dwelling law and not federal law.
- Members who are individuals include earnings from the LLC on their individual tax returns.
What is an LLC?
A Limited Liability Company (LLC) is a business structure that combines aspects of a corporation and a partnership. The owners are called members and not partners or shareholders. The number of members is normally not subject to any limit, and the members can be individuals, corporations, or other limited liability companies.
Advantages
One of the main advantages of an LLC is that it is treated as a separate legal entity, similar to a corporation, and the members are not personally liable for the company’s debts or obligations. There are two exceptions to this limited liability: when a member grants a personal guaranty for an obligation of the LLC, and when a court determines that the company is actually an alter ego of the owners themselves, in which case the members could be held personally liable.
In general, there are no restrictions on the persons or entities that can be members of an LLC. It may be necessary to obtain written consent from the members prior to admitting new owners, unless the articles of organization (see below) provide otherwise.
The majority of states and the Internal Revenue Service (IRS) recognize an LLC with a single member as a legitimate business structure.
LLCs generally require fewer formalities than a regular corporation or an S corporation. For example, the shareholders’ and directors’ meetings that are required for corporations are normally not required for LLCs.
There is flexibility in how LLCs are managed and how earnings are distributed. All the income and losses of an LLC pass through the company to the individual members. This avoids the double taxation of having to pay income tax on the company’s earnings and then again having to pay individual income tax on the company’s distributions. The LLC may have to file a tax return, but the individual owners include the company’s earnings in their individual tax returns and pay tax on them.
Disadvantages
A corporation can have an indefinite life, but LLCs normally have a fixed duration. Generally, the articles of organization must establish the date on which an LLC will end. In the absence of a provision to the contrary in the articles of organization or in the operating agreement, an LLC will also be dissolved when one of the members dies, retires, resigns, is expelled, or declares bankruptcy, unless within 90 days a majority of the other members vote to continue the LLC.
Forming and operating an LLC require greater formalities than a sole proprietorship or a partnership.
Forming an LLC
An LLC is formed according to state law and not according to federal law. All 50 states in the U.S. now allow the formation of LLCs.
There are two main actions that need to be taken to form an LLC: articles of organization and an operating agreement.
Articles of Organization:
The articles of organization have to be drafted and presented to the corresponding Secretary of State, paying the required charges. These articles will have to be in the form required by the Secretary of Region. Among the information normally required is the date on which the LLC will be dissolved and a statement regarding the administration of the LLC, for example whether the LLC will be managed by one administrator, more than one, or whether the members themselves will be in charge of the administration.
Operating Agreement:
Although in many states it is not an obligation, it is advisable to have an operating agreement for the LLC. This agreement can be made before or after the presentation of the articles of organization. This agreement can establish the way in which earnings will be distributed and can interpret the owners, how the ownership can change, and the responsibilities of the members.
You should contact the office of the Secretary of State in the state where you are planning to site up an LLC to accumulate out the specific requirements for formation.
Registered Agent
Almost all the states require that a registered agent be named for the LLC. In the majority of cases, this agent can be any person who has a domicile in the state in which the LLC is constituted.
The registered agent acts as the LLC’s representative for purposes of accepting the serving of process, or notification of legal action; that is, for acknowledging any right proceeding, or receiving notification of any legal or official communication from the government that is presented to the company.
Federal Income Tax
LLCs are established according to the laws of each space, and the federal government has no classification for LLCs. Therefore, for purposes of the U.S. federal income tax, an LLC must file a return as a corporation, a partnership or a sole proprietorship.
LLCs with a Single Member
In general, when an LLC has only one member, the fact that it is an LLC is ignored for purposes of filing a federal income tax return, but that does not change the fact that legally it continues to be an LLC.
When the only member is an individual person, the LLC’s income and expenses are reported on that person’s individual income tax return on Form 1040, Schedule C (Profit or Loss from Business), Schedule E (Supplemental Income and Loss), or Schedule F (Profit or Loss from Farming), as applicable.
When the only member is a corporation, the income and expenses of the LLC are included in the corporation’s income tax return on Form 1120 (for a normal corporation) or Form 1120S (for an S corporation). In the case of a normal corporation (1120), the income and expenses are not transferred to the shareholders. For an S corporation (1120S), each owner or shareholder declares his or her fragment of the earnings, credits and deductions declared on Schedule K-1 (Beget 1120S).
LLCs with More than One Member
LLCs with more than one member must file a tax return as a partnership, using Form 1065. Then, the members include their portions of the earnings, credits, and deductions from the LLC, as reported on Schedule K-1 (Form 1065), on their individual income tax returns.
Form 8832
In order to choose the intention an LLC will be treated for tax purposes, you can file Form 8832, Entity Classification Election. If this form is not filed, the LLC will be treated as indicated above. If you do not want to change this treatment, there is no need to file Form 8832.
An LLC with only one member can elect to be treated as an association subject to tax as a corporation, instead of a sole proprietorship, and an LLC with two or more members can elect to be treated as an association subject to tax as a corporation or a partnership.
Form 8832 is also faded when you want to subsequently change the way the LLC is considered for federal income tax purposes.
Self-Employment Tax
When a business formed as an LLC has net earnings of over $400, it may be necessary to file Schedule SE, Self-Employment Tax, which is the equivalent of the social security and Medicare taxes.
Generally, when an LLC has only one member, who reports the LLC’s earnings on Schedule C or F of his or her individual income tax return (Form 1040), Schedule SE will also have to be filed and the self-employment tax paid.
When an LLC files a tax return as a partnership (Form 1065), the members pay the tax on self-employment income (Schedule SE) on their fraction of the partnership (LLC) earnings. But if there are members who are the equivalent of limited partners, they would pay this tax only if the LLC pays them for their services.
When the LLC Has Employees
When the LLC has hired employees, it needs to withhold, report, and deposit the corresponding payroll taxes: the social security and Medicare taxes, federal income tax, and the state or local income taxes that may apply, and pay the employer’s portion of the social security and Medicare taxes.
Develop 941, Employer’s Quarterly Federal Tax Return, needs to be filed (Manufacture 943 in the case of a farming business). After the close of the year, W-2 forms have to be prepared and sent to the employees and to the IRS, reporting the compensation paid for the year and the taxes withheld. Also, Form 940 or 940-EZ, Employer’s Annual Federal Unemployment (FUTA)Tax Return, must be filed when the LLC paid salaries of $1,500 or more in any quarter during the calendar year, or had one or more employees working at least part of a day in 20 different weeks during the year.
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Filed under llc bankruptcy by on Sep 29th, 2010. Comment.
- The members of an LLC are not personally liable for the obligations of the LLC.
- LLCs are constituted according to state law and not federal law.
- Members who are individuals include earnings from the LLC on their individual tax returns.
What is an LLC?
A Limited Liability Company (LLC) is a business structure that combines aspects of a corporation and a partnership. The owners are called members and not partners or shareholders. The number of members is normally not subject to any limit, and the members can be individuals, corporations, or other dinky liability companies.
Advantages
One of the main advantages of an LLC is that it is treated as a separate good entity, similar to a corporation, and the members are not personally liable for the company’s debts or obligations. There are two exceptions to this limited liability: when a member grants a personal guaranty for an obligation of the LLC, and when a court determines that the company is actually an alter ego of the owners themselves, in which case the members could be held personally liable.
In general, there are no restrictions on the persons or entities that can be members of an LLC. It may be necessary to score written consent from the members prior to admitting new owners, unless the articles of organization (see below) provide otherwise.
The majority of states and the Internal Revenue Service (IRS) recognize an LLC with a single member as a legitimate business structure.
LLCs generally require fewer formalities than a regular corporation or an S corporation. For example, the shareholders’ and directors’ meetings that are required for corporations are normally not required for LLCs.
There is flexibility in how LLCs are managed and how earnings are distributed. All the income and losses of an LLC pass through the company to the individual members. This avoids the double taxation of having to pay income tax on the company’s earnings and then again having to pay individual income tax on the company’s distributions. The LLC may have to file a tax return, but the individual owners include the company’s earnings in their individual tax returns and pay tax on them.
Disadvantages
A corporation can have an indefinite life, but LLCs normally have a fixed duration. Generally, the articles of organization must establish the date on which an LLC will end. In the absence of a provision to the contrary in the articles of organization or in the operating agreement, an LLC will also be dissolved when one of the members dies, retires, resigns, is expelled, or declares bankruptcy, unless within 90 days a majority of the other members vote to continue the LLC.
Forming and operating an LLC require greater formalities than a sole proprietorship or a partnership.
Forming an LLC
An LLC is formed according to state law and not according to federal law. All 50 states in the U.S. now allow the formation of LLCs.
There are two main actions that need to be taken to form an LLC: articles of organization and an operating agreement.
Articles of Organization:
The articles of organization have to be drafted and presented to the corresponding Secretary of State, paying the required charges. These articles will have to be in the form required by the Secretary of State. Among the information normally required is the date on which the LLC will be dissolved and a statement regarding the administration of the LLC, for example whether the LLC will be managed by one administrator, more than one, or whether the members themselves will be in charge of the administration.
Operating Agreement:
Although in many states it is not an obligation, it is advisable to have an operating agreement for the LLC. This agreement can be made before or after the presentation of the articles of organization. This agreement can establish the plot in which earnings will be distributed and can define the owners, how the ownership can change, and the responsibilities of the members.
You should contact the office of the Secretary of State in the state where you are planning to set up an LLC to find out the specific requirements for formation.
Registered Agent
Almost all the states require that a registered agent be named for the LLC. In the majority of cases, this agent can be any person who has a domicile in the state in which the LLC is constituted.
The registered agent acts as the LLC’s representative for purposes of accepting the serving of process, or notification of legal action; that is, for acknowledging any legal proceeding, or receiving notification of any legal or official communication from the government that is presented to the company.
Federal Income Tax
LLCs are established according to the laws of each state, and the federal government has no classification for LLCs. Therefore, for purposes of the U.S. federal income tax, an LLC must file a return as a corporation, a partnership or a sole proprietorship.
LLCs with a Single Member
In general, when an LLC has only one member, the fact that it is an LLC is ignored for purposes of filing a federal income tax return, but that does not change the fact that legally it continues to be an LLC.
When the only member is an individual person, the LLC’s income and expenses are reported on that person’s individual income tax return on Form 1040, Schedule C (Profit or Loss from Business), Schedule E (Supplemental Income and Loss), or Schedule F (Profit or Loss from Farming), as applicable.
When the only member is a corporation, the income and expenses of the LLC are included in the corporation’s income tax return on Invent 1120 (for a normal corporation) or Form 1120S (for an S corporation). In the case of a normal corporation (1120), the income and expenses are not transferred to the shareholders. For an S corporation (1120S), each owner or shareholder declares his or her portion of the earnings, credits and deductions declared on Schedule K-1 (Design 1120S).
LLCs with More than One Member
LLCs with more than one member must file a tax return as a partnership, using Beget 1065. Then, the members include their portions of the earnings, credits, and deductions from the LLC, as reported on Schedule K-1 (Originate 1065), on their individual income tax returns.
Form 8832
In order to choose the way an LLC will be treated for tax purposes, you can file Form 8832, Entity Classification Election. If this form is not filed, the LLC will be treated as indicated above. If you do not want to change this treatment, there is no need to file Develop 8832.
An LLC with only one member can elect to be treated as an association subject to tax as a corporation, instead of a sole proprietorship, and an LLC with two or more members can elect to be treated as an association subject to tax as a corporation or a partnership.
Form 8832 is also used when you want to subsequently change the way the LLC is considered for federal income tax purposes.
Self-Employment Tax
When a business formed as an LLC has net earnings of over $400, it may be well-known to file Schedule SE, Self-Employment Tax, which is the equivalent of the social security and Medicare taxes.
Generally, when an LLC has only one member, who reports the LLC’s earnings on Schedule C or F of his or her individual income tax return (Form 1040), Schedule SE will also have to be filed and the self-employment tax paid.
When an LLC files a tax return as a partnership (Form 1065), the members pay the tax on self-employment income (Schedule SE) on their portion of the partnership (LLC) earnings. But if there are members who are the equivalent of runt partners, they would pay this tax only if the LLC pays them for their services.
When the LLC Has Employees
When the LLC has hired employees, it needs to withhold, report, and deposit the corresponding payroll taxes: the social security and Medicare taxes, federal income tax, and the state or local income taxes that may apply, and pay the employer’s portion of the social security and Medicare taxes.
Form 941, Employer’s Quarterly Federal Tax Return, needs to be filed (Build 943 in the case of a farming business). After the close of the year, W-2 forms have to be prepared and sent to the employees and to the IRS, reporting the compensation paid for the year and the taxes withheld. Also, Form 940 or 940-EZ, Employer’s Annual Federal Unemployment (FUTA)Tax Return, must be filed when the LLC paid salaries of $1,500 or more in any quarter during the calendar year, or had one or more employees working at least part of a day in 20 different weeks during the year.
Related Posts
Filed under llc bankruptcy by on Sep 7th, 2010. Comment.
- Aloha Airlines first called Trans-Pacific Airlines (TPA).
- TPA (Aloha Airlines) first revenue flight in 1946.
- Aloha Airlines files for bankruptcy in 2005 & 2008.
July 26, 1946, is a day that will remain dear to many Hawaii residents because that’s the day Aloha Airlines, then called Trans-Pacific Airlines, had its first revenue flight. It was a day that would stamp the birth of Hawaii’s second largest flagship airline. It would also be a day that would be celebrated for years to come by generation’s o families that shared a piece of this airlines great lineage over the next six decades. Stories of “bare bones” operations, noisy flights, hula performances by the “stewardesses” and the picturesque view from the DC-3’s that took your breath away, these are the stories our grandparents remember about their flights on Trans-Pacific Airlines (TPA). They notify at the lack of comfortable accommodations and decor within the aircrafts and just smile as they remember those carefree days long gone.
Bill Wood states in his book “50 Years Of Aloha, The Story of Aloha Airlines”, the airline was the brainchild of a distinguished man named Ruddy Tongg. Mr. Tongg owned a publishing company and was an affluent Chinese who was familiar with the frustrations of the ethnic minorities in Hawaii. Back then, in spite of being in Hawaii, the Caucasians who flooded to Hawaii enjoyed many of the benefits not extended to those not of the Caucasian race. Money wasn’t so much an issue when it came to the inequities but rather just the stigma of racial prejudice that was not a part of Hawaiian culture. So it was a time of growth and new discoveries for the Hawaiian Islands. Mr. Tongg wanted to make his mark in Hawaii history and represent the strength and independence of the minority races that were treated unjustly. So, with a dream of social equality and the drive to make it work, Ruddy Tongg and a group of associates, who remain unnamed, embark on their first steps towards creating an airline that will span over 60 years and help define the financial landscape of the Hawaiian islands.
The early years of TPA were difficult and grime. Many of the aircrafts that TPA acquired were surplus aircrafts from the military so they lacked the comfortable and aesthetically pleasing atmosphere passengers are familiar with today. The planes seating configuration consisted of seats facing inward and lining up along the fuselage, or the interior walls of the plane. Many times the passengers and cargo were flying side-by-side. The aircrafts were not pressurized so they couldn’t fly very high. It was commonplace to fly along the island chain and peek almost up close the beautiful waterfalls and lush mountaintops of Maui, Kauai and the Tremendous Island of Hawaii.
Ruddy Tongg’s dream of a “kama`aina” airline was coming true. The “stewardesses” were splendid and provided each passenger with flowers, drinks and a hula exhibit onboard. With the flights between islands lasting anywhere from 45 minutes to 2 hours long. Many employees of TPA performed various tasks when asked to “fill in”. No such thing as “not on my job description” during these early days and the employees didn’t mind helping out because that was the Hawaii culture back then.
Then TPA changed its name to TPA Aloha Airlines later to drop the TPA and become simply Aloha Airlines. Two names synonymous with the airline are Dr. Hung Wo Ching and Mr. Sheridan Ing. These two men help to orchestrate a turnaround for Aloha Airlines and encourage to foster the “spirit of aloha” within the ranks of the employees. However, despite the creative and courageous efforts of the two men, Aloha Airlines continued to see fewer ample days and more bad days financially. Eventually, Dr. Ching and Mr. Ing would become the private owners of Aloha Airlines and would do all they could to continue helping the airline. Under their tutelage, the airline would expand and see morale increase despite the looming financial issues. However, Aloha was always considered to be the more stable of the two Hawaii flagship airlines. Whenever a Hawaii resident would ask which of the two airlines do better and is more
In 2005, Aloha Airlines would, in practice, by owned by a new company, Yucaipa Cos. LLC, because they bailed Aloha out of bankruptcy by investing $100 million. “The families”, Chings and Ings, as they were fondly and reverently referred to, would still have interest in the airline and would have seats on the board of directors. Many employees were conflicted about this “buyout” because of the uncertainty of what it would hold for the company in the future.
Unfortunately the addition of Go! Airlines, subsidiary of Mesa Airlines, into the Hawaii inter-island airline industry would prove to be more than just a pesky nuisance. In 2006-2008, Aloha Airlines suffered the biggest losses financially than ever before. It was rumored that Yucaipa was writing checks to the tune of $8million per month to mask operating expenses including payroll, airport taxes and rent, from January 2007 until now. No one can say how true that rumor is.
What does the future hold for Aloha Airlines now that it has filed for Chapter 11 Reorganization Bankruptcy again? The consensus is the airline may not last much longer but it would be a black day if Aloha had to close its doors.
So much history and memories surround this carrier and its place in the evolution of the state of Hawaii. Its history is a part of the many successes that abound in the site. People remember their parents and grandparents working hard at Aloha to pay their way through school. Now many of these people are successful doctors, lawyers, business owners who have this little airline in Hawaii to thank for being a part of their personal success. Students who attended mainland colleges were able to fly home because family members worked at Aloha and many others benefited because of scholarships provided by Aloha and the various unions representing Aloha employees. Victims of Hurricane Iniki and Iwa were helped because Aloha sent over supplies to help rebuild the devastated areas. When a coworker needed encourage, the other employees of Aloha were there to help. The generosity of the employees helped to foster the sense of “ohana” at Aloha, and that will missed most of all according to some. Many have watched their coworkers families grow and flourish while at Aloha. Aloha is more than unbiased an airline. It’s a testament to the power of sheer will and determination of one man, Ruddy Tongg, and to Dr. Ching and Mr. Ing and their investments emotionally and financially into an airline that they knew would help benefit the island residents. Aloha is a symbol of the strength and kindness the “kama`aina” possess and has secured itself as one of the pillars that beget up the foundation of Hawaii’s state history and, no matter the outcome, will always recount the “Spirit of Aloha” that is Hawaii!
Bill Wood, 1996 “50 Years Of Aloha: The Story of Aloha Airlines”, Aloha Airlines, Inc.
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Filed under llc bankruptcy by on Sep 2nd, 2010. Comment.
It is no secret that our economy is in a backslide, the financial deficit has caused many things around the U.S. to change. Unfortunately due to the economic spot many well known and established business are being threatened to close for bankruptcy and other financial issues. One of which we all know well is Chrysler LLC. It is truly unfortunate the changes that are being made in companies across U.S.
According to the Phoenix Business Journal Chrysler, a popular car dealership has plans to get rid of 789 dealerships in the U.S. This makes for a total of 25% of the companies dealerships and will include 5 in the State of Arizona alone, up to 12 Chrysler dealers will be closing in Washington, eight in the northern area of Texas and 11 in the Kansas City area. It has been said that Chrysler had filed for a Chapter 11 bankruptcy early in April and the closure of these dealers was discussed in the court proceedings. According to Chrysler in their court filing, their dealers we’re not as competitive as some of the other foreign car brands. Chrysler says that on an average they were able to sell 303 vehicles per dealer in the year 2008, which is a 46% drop in their sales from previous years. On the other hand, car brands such as Honda sold an average of 1,200 vehicles per dealer, and Toyota topped that with nearly 1,300 of their vehicles sold per dealer
Sadly the dealers were notified in the A.M. hours through UPS letters if their dealership would be one of the ones to discontinue open or on the closure list. A list of dealers that are due for closure across the United States can be found at this link. The closing dealerships do have the option to appeal, but because most of them are in a struggle anyway to make ends meet the option may be a fluke.
The trouble with Chrysler closing down so many of its dealers are the number of men and women who will be without jobs and taxes are not paid. It’s hard enough to find a job in this economy and with major companies continuing to go out of business it’s getting harder. Unfortunately until the economy picks benefit up these are the changes that we must face.
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Filed under llc bankruptcy by on Aug 24th, 2010. Comment.