Joe Gibson Auto World Files for Bankruptcy

A car dealership facing dozens of lawsuits has filed for bankruptcy. A court document shows Joe Gibson Autoworld, which runs Suzuki dealerships in Spartanburg and Gaffney, has filed for chapter 11 bankruptcy. Joe Gibson Suzuki issued a written statement saying the company is reorganizing to keep the business running and protect employee jobs.

Garren Burdette says when he bought a car from Joe Gibson Suzuki, he ended up with a car payment he cannot afford. Said Burdette, "We're supposed to pay $149 a month. Thanks to Joe Gibson, we get to pay $760 a month."

Burdette is one of dozens of customers that have filed lawsuits against Joe Gibson Suzuki, accusing the dealership of deceptive advertising and sales practices. Even though Joe Gibson Autoworld has filed bankruptcy, Burdette is not worried about his lawsuit. Said Burdette, "It's not just a Joe Gibson Suzuki issue. He has partnerships in this. One man couldn't make this run. You've got lending institutions that have agreed with this."

Said Attorney Rodney Pillsbury, who filed 20 suits against the dealerships, "We anticipated this might happen. That's why our lawsuits were filed against all the parties that were involved in the transactions. The lawsuits will proceed as scheduled against the other entities."

Pillsbury says he does not believe a bankruptcy will protect Joe Gibson Suzuki from the lawsuits. Said Pillsbury, "Fraud, which we've alleged in this lawsuit, does not discharge an obligation by bankruptcy."

Joe Gibson Suzuki issued a statement saying, "Joe Gibson Suzuki/Mitsubishi, with dealerships in Spartanburg and Gaffney, is taking steps to reorganize in an effort to protect employees' jobs and keep the business running smoothly."

The statement says the dealerships have instituted a 72 hour return policy and delivery checklist for customers. The statement quotes Joe Gibson, "We work with our customers to resolve complaints and will continue to do so. Excellent customer service is our number one goal."

Manager Billy Mills was also quoted, "Mills said he thought the situation got out of hand in the media. 'None of the claims that were published had been validated by a court of law.'"

Suzuki executives recently recognized Joe Gibson Suzuki as one of its top dealerships in the country. But many car dealerships of all makes and models are struggling in this tough economy.

WSPA TV and our sister station WYCW TV are named as creditors in the bankruptcy filing for unpaid advertising bills.

You can read the full statement from Joe Gibson Suzuki here, followed by written answers to questions we posed to the dealership. The following was submitted to WSPA by Betsy McMillan, who is handling public relations for Joe Gibson Suzuki.

To view a pdf copy of Joe Gibson's statement regarding the matter, click here.

To view a pdf copy of Joe Gibson's creditor's list, click here.

To download a free pdf reader, click here.

The following are written answers we received to our questions:

1. Why did they file for bankruptcy protection?
The dealership is taking steps to reorganize in an effort to protect employees' jobs and keep the business operational.

2. What does this mean for the dealership? Will they continue to operate, close, or will there be some changes? Can employees expect to be paid?

The dealership will continue to operate. Employees will be paid.

3. How has the dealership been responding to customer complaints in the lawsuits? Have any of those customers been offered a change in their loan or agreements?

Many steps and extra measures are taken to help ensure customers understand the terms and conditions of an agreement. Customers receive guidance from numerous team members to include a salesperson, sales team leader, and a delivery coordinator. Each of these team members reviews and explains information multiple times so the customer understands the information and is completely satisfied with the selection of their vehicle. Another extra measure, the Delivery Checklist", was implemented this year as a way to further enhance customer communication. This checklist allows the dealership to keep track of all commitments - both on the dealer side and the customer side. Everyone who buys a car signs paperwork that indicates they understand the deal they're getting. Customers also receive surveys from the dealership and the national Suzuki Corporation as well as follow up phone calls. There is also a dedicated customer service information line that is answered by a customer relations manager. The dealership has won numerous awards for sales and customer service and expects that trend to continue.

4. How is the dealership responding to the Department of Consumer Affairs request for a change in advertising and business practices?

We cooperated and responded to the Department of Consumer Affairs within the requested timeframe and with a request for further clarification on their part regarding certain aspects of their letter. We have not received any further communication from them.