Until recently, they've been able to keep expenses relatively low, but selling cars has always been low margin business.
Their sales is still pretty strong, so I hope they're able to restructure their debt with creditors.
Their sales is still pretty strong, so I hope they're able to restructure their debt with creditors.
It is reminiscent of an attempt to corner silver or something. I’m sure the insiders cashed out.
In 1991, García bought Ugly Duckling, a bankrupt rent-a-car franchise, for under $1 million and merged it with his own fledgling finance company, and turned it into a company selling and financing used cars for sub-prime buyers with poor credit history.[5] Garcia took the company public on the NASDAQ exchange in 1996, trading under the ticker "UGLY".[6] In 1999, Garcia was involved in six lawsuits alleging he had "abused his position to profit" from a real estate deal where he ultimately acquired 17 company properties at a 10% discount.[5] In 2002, Garcia and the former Ugly Duckling CEO, Gregory Sullivan, took the company private and renamed it DriveTime.[7]
Give it a year or two, it’ll all come out.