Buyer lined up for Dusty Old Cars
NASHUA – A New York financial firm is offering to buy out Dusty Old Cars, and its entire inventory of classic cars, for $1.5 million.
Reich Brothers sent a letter this week to the court-appointed trustee, Michael Askenaizer, offering to buy the company, its name, and all the assets for $1.5 million. Askenaizer is tasked by the court with liquidating the classic car dealership caught in New Hampshire Attorney General’s investigation into the more than 100 formal complaints filed about the business.
Dusty Old Cars and its owner, Stephan Condodemetraky, ran into trouble when customers started to complain about the business practices. The customers alleged that Condodemetraky charged them for bogus repairs on the cars sold through the business, and the people who consigned cars through the dealership alleged they have not received anything after the car was sold, or they received thousands less than they are owed due to bogus repairs and fees.
Condodemetraky filed for chapter 11 bankruptcy protection in February, and Askenaizer was appointed by the court in March. Earlier this month Askenaizer petitioned the court to change the bankruptcy to a chapter 7 liquidation say that Condodemetraky hid and destroyed financial records making it impossible to operate the business.
Condodemetraky initially tried to get a loan through Reich Brothers for $750,000 as part of his plan to bring the company out of bankruptcy. The April 19 sales agreement sent to Askenaizer indicated that the company would own all of the vehicles located in the Airport Road and Derry facilities, as well as the intellectual property of the business, including the name.
Condodemetraky moved between 30 to 40 cars, including at least one Ferrari, to a warehouse facility on Tinkham Avenue in Derry. That facility is leased to Condodemetraky though a separate corporate entity not directly part of the Dusty Old Cars family of corporations.
The sales agreement states that the business would have a right to use any current Dusty Old Cars employees. At this time, the sales agreement states, Condodemetraky is the only remaining Dusty Old Cars employee.
Askenaizer is currently trying to give the consignors back their vehicles, but has run into some trouble. He has been charging the owners a fee of $1,000 to get back their cars. The fee to cover businesses expenses has angered the many consignors who feel there were cheated by Condodemetraky. The New Hampshire Attorney General’s office has also filed a complaint in court about the fees, and a hearing is set for next week to deal with the objection.