Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Bankrupt GM To Cut 38 Dealerships In Missouri

After declaring bankruptcy, automaker GM is paring down their franchises across the country - including 38 different dealers in Missouri. This downsizing will shrink the 6,000 GM dealerships in the United State to just 3,600 of the company's best and most lucrative dealers.

Some dealers will be offered continued participation with the company, while others are being offered wind-down agreements. Those taking part in wind-downs will receive assistance from GM to help with their transition. In Kansas City, MO, Conklin-Fangman Motor Co. in Kansas City and Adams Chevrolet in Belton both received wind-down notices. Conklin-Fangman will appeal their wind-down decision - as about 45 other GM dealerships have done over the last month.

GM filed for bankruptcy on June 1, 2009, after a recent history of financial problems. Years of financial losses paired with the economic hardships of the last six months were too much for the behemoth car company to handle.