Duarte Nissan Inc. has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, only 15 months after the dealership moved to the city's 210 Freeway Autoplex, which has been in operation two years.
The business will remain open. About 10 employees, mostly salespeople, have been laid off since last week, when Nissan filed for bankruptcy, said Bruce Low, general manager.
The dealership's financial troubles stem from a suit against one of its creditors, Low said. He would not disclose details.
Auto sales have, in fact, surged since the business moved to Duarte. Last year, 5,000 Nissan and Isuzu models were sold for a total of $60 million, compared with 2,500 in 1988, when the business was in Arcadia, Low said.
Duarte Nissan Inc. generates about $300,000 of the city's $1.65 million in annual sales tax revenue. It is the largest sales tax producer among the Autoplex's five dealerships, said Duarte City Manager Jesse Duff.