A Cheney Ford dealership closed its doors without any notice to customers in December after its bank halted its line of credit, the dealers’ attorney said Wednesday.
Bonanza Ford, which opened in 1995 at 10010 S. Highway 904, shut down during the second week of December. About a year ago Bonanza had about two dozen employees.
The unannounced closure angered customer Richard Siegel, a retired Rosalia resident, who bought a new Ford pickup at Bonanza the first week of December.
Siegel said he paid for the truck and bought an almost $500 service contract, but no Bonanza employee warned him the dealership would soon shut its doors.
Siegel said he’s now considering legal action.
Attempts to reach the owners of the dealership, Mark and Deborah Loy, were not successful. Their attorney, Peter Grabicki, said the Loys “were victims of the financial crisis.” Sometime before Dec. 1, Bank of America did not renew an annual line of credit, called “flooring,” with the Loys, said Grabicki.
After the Loys closed the business, Bank of America took control of the vehicles still on the lot, he said. That led to a lawsuit filed in Spokane County Superior Court by the property landlord against the Loys and the bank.
In that suit, filed in early January, landlord Bonanza Land LLC is asking for past-due rent from the Loys and other costs. The landlords’ attorney, Michael Currin, said Bonanza Land LLC has prior claim on the remaining cars, not the bank.
Currin’s suit on behalf of the LLC asserts the Loys owe more than $70,000 for two months rent.
Grabicki said the Loys intend to sell the dealership and remaining company assets, which would include service equipment and parts.