Auto Shop Millions Of Dollars In Debt

Monday, March 3rd 2008, 6:24 pm
By: News On 6

The News On 6 learned more on Monday about the financial problems facing the owner of a Tulsa based auto repair shop. Todd Fox was in bankruptcy court last week, four months after suddenly closing his five Fox Collision Centers in Tulsa. News On 6 anchor Scott Thompson reports Todd Fox owed more than $7 million to businesses across the country.

Hundreds of pages of court documents show mismanaged money. Fox Collision Center shut its doors October 27th. Owner Todd Fox left town and dozens of employees without paychecks or answers.

In late January, Fox filed Chapter 11 bankruptcy. Court records show he listed his personal assets at more than $4 million, but that he owed $7,800,000. The list of creditors he owed money takes up 112 pages. The amounts go from 10 cents to a Tulsa wrecker service to $243,000 to a parts distribution center in Oklahoma City. That doesn't count the $3 million combined to his two main lenders.

The Bankruptcy Court has started the process to recoup that money. It includes selling off Fox's property. Two facilities already have a contract pending by the owners of two other auto repair businesses. The price tag for the one on 61st Street is close to $2 million dollars. The one on Peoria could sell for $1 million.

"That's a good, good area. There are some great people in that area. The area will definitely support it," said Danny Smith with Same Day Auto Repair.

Danny Smith is behind the purchase of the Peoria building. He already owns six auto repair shops in Tulsa and Sand Springs. He's followed the story since Fox Collision closed in October. He calls it a black eye for the auto repair business, but says he's ready to move to midtown and, hopefully, hire former Fox employees.

"It's all about doing a good business, an honest business, with ethics. That's what it is all about," said Smith.

A hearing on March 15th will decide whether the two sales will be accepted. A Wichita based company will be auctioning off property owed by Fox Collision Center this month. The first auction is a week from Wednesday.