Infiniti of Denver is being purchased by a trio of local businessmen, including the dealership’s general manager.
The dealership had gone into receivership after its Ohio owner faced foreclosure because of bad real-estate deals, a downturn in auto sales and other problems that strained his finances.
An agreement is in place to sell the dealership to the local group, named CD Automotive. Chris Smith, who bought it with wholesale dealer Dave Cook and another partner, whom the group declined to name, said the sale should be final in June and that the name will remain.
“Infiniti is a fantastic brand, and this store has always watched expenses and done business the right way regardless of what the economy is doing,” said Smith, the general manager.
In a lawsuit filed in Franklin County, Ohio, KeyBank alleged that Daniel Schmidt was behind on $28.4 million in loan payments, Automotive News reported. The suit said all of Schmidt’s dealerships lost money except Infiniti of Denver.
If Schmidt’s company had not mixed its auto and real-estate dealings, Smith said he would not have had the opportunity to buy the Denver dealership.
CD Automotive was one of eight bidders on the dealership, said Smith, who will continue to be the general manager. The partnership did not release the purchase price.
The store at 2990 S. Havana St. in Aurora is one of three Infiniti stores in the state.
“It is good that consumers will still have the local, conveniently located dealership for service, maintenance and checkups,” said Tim Jackson, president of the Colorado Automobile Dealers Association. “Chris Smith is a good general manager, so he will be a big asset to the new ownership team.”
So far, no Colorado dealerships have been foreclosed on or gone into bankruptcy, said Jackson.
“This has more to do with the parent company than the local location,” he said.
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
