Fox Explains Reasons for Failed Finances in Bankruptcy Court - BodyShop Business

Fox Explains Reasons for Failed Finances in Bankruptcy Court

Todd Fox spoke to creditors in U.S. Bankruptcy Court on Feb. 29, explaining how he plans to liquidate Fox Collision Repair’s assets to pay nearly 100 pages of creditors. Fox appeared with his bankruptcy attorney, Ed Nazar, in the U.S. Trustee’s office.

Fox abruptly shut his 18 shops in October, leaving employees and creditors unpaid, and he filed for bankruptcy in January with more than $7 million in debts.

According to The Wichita Eagle, Fox described the failed company’s finances using words such as “estimate” and “guess,” and struggled to answer questions regarding the bankruptcy. Nazar told the court that he thinks Fox Collision Repair’s liquidation will bring in enough money to pay employees for approximately two weeks of wages they’re owed.

Since Fox and Nazar cannot access the company’s financial software because of failure to pay the vendor, Nazar said he didn’t have a complete inventory of assets. Adding to Fox’s problems, M&I Bank, the company’s primary lender, won’t advance money to close down the company.

The liquidation will take months to complete, Nazar told creditors. The Wichita Eagle reports that some of the equipment that would have been sold was stolen in Oklahoma.

You May Also Like

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Logan Payne, manager at Payne & Sons Paint & Body Shop in Dallas, Texas, from the Texas Auto Body Trade Show on why it's important to follow OEM repair procedures. Main point no. 1? Don't let the techs write the sheet — divide up the writers' job versus the old way where the estimator handled everything from beginning to end.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.

Body Bangin’: The Magic of a Massive MSO with Patrick Crozat

Micki Woods interviews Patrick Crozat, the COO of G&C Auto Body, which is the largest privately-owned, family-owned auto body shop group.

Body Bangin’: Changing Your Mindset with Mike Jones

Micki Woods interviews Mike Jones of Discover Leadership Training on changing your mindset to change your life.

Other Posts

Body Bangin’: Rivian Collision Program and Insurance

Micki Woods interviews Frank Phillips, collision repair program manager of Rivian, on how Rivian’s collision program works.

Body Bangin’: Favorite Takeaways from the Southeast Conference

Live from the Southeast Collision Conference, Micki Woods does a post-show wrap-up on the Southeast Collision Conference with the SCC committee.

Body Bangin’: Overcoming Objections

Live from the Southeast Collision Conference, Micki Woods interviews Ron Reichen and Barry Dorn on overcoming objections, the talent shortage and the SCRS blend study.

Body Bangin’: Easily Find and Add Non-Included Operations

Live from the Southeast Collision Conference, Micki Woods interviews Scott Ayers on the Blueprint Optimization Tool (BOT).