The company, which operates 86 retail store locations in New York, New Jersey and Pennsylvania, listed assets of about $75 million and liabilities of about $72 million, according to court filings.
Autobacs Seven created the Autobacs Strauss unit after it agreed to acquire Strauss Discount Auto out of bankruptcy protection for about $55 million in 2007. Autobacs Strauss said it plans to use the bankruptcy process to fix its operations and close some underperforming stores.
The company had entered into a series of loan agreements with Autobacs Seven for infusion of working capital and implementation of a new business strategy, court filings showed.
In December, Autobacs Seven said it was no longer willing to provide additional working capital.
Earlier this month, Autobacs Seven gave a written notification to Autobacs Strauss, saying the loan agreements were in default and declared all sums due and immediately payable, according to court filings.
The company owes Autobacs Seven about $42.4 million, it said.
The South River, New Jersey-based Autobacs Strauss said it employs about 1,450 people and that it plans to use the Chapter 11 process to emerge as a cash flow positive entity. (Tire Review/Akron)
