MEMPHIS, Tenn. — American Car Center, a used car auto dealer that suddenly closed its doors last month, has filed for bankruptcy.
According to court documents, RAC Dealership, LLC, also known as American Car Center, filed for Chapter 7 bankruptcy on March 14.
American Car Center, which has two locations in Memphis, closed on Feb. 24, resulting in 288 employees losing jobs. The Tennessee Motor Vehicle Commission said loans made through American Car Center’s subsidiary, American Finance, are in the process of being purchased by Westlake Financial Services.
Former employees also filed a federal lawsuit against the auto dealer and its owners following the closure.
For information about American Car Center’s closure and what you should do if you owe a car note, click here.