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Craig D. Robins, Esq. New York Bankruptcy Attorney, Longisland bankruptcy attorney

“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”

Craig D. Robins, Esq.

Chrysler Bankruptcy Will Lead to Many Long Island Personal Bankruptcy Filings

Posted on Thursday (May 14, 2009) at 11:35 pm to Bankruptcy and Society
Current Events
Long Island Economy

Many Long Islanders will become unemployed by the Chrysler Bankruptcy, leading to personal bankruptcy filings

Many Long Islanders will become unemployed by the Chrysler Bankruptcy, leading to personal bankruptcy filings

Written by Craig D. Robins, Esq.

Ripple Effect will hit Nassau County and Suffolk County
Chrysler, which is undergoing this nation’s largest Chapter 11 bankruptcy reorganization, announced today that it is ending franchise agreements with 789 dealers across the country, about one-quarter of the company’s dealership roster. The terminations are to take effect on June 9.
According to Chrysler’s CEO, the aim is “to create a dealer network that is stronger, more profitable, and better able to meet and exceed the high expectations of today’s car and truck buyers.”
However, this will have predictable negative consequences on Long Island that will certainly result in financial hardship to numerous consumers.  The ensuing ‘ripple effect”  that will inevitably cause many of them to file their own personal bankruptcies.
We already know that Chrysler is closing four Long Island dealerships:  ABC Motors in Valley Stream, Eagle Auto Mall in Riverhead, Thomas Dodge in Port Jefferson and Island Jeep in Lindenhurst.
Once these dealers are out of business, perhaps a hundred employees in Nassau and Suffolk Counties will be without work.  Local vendors who supplied these dealers will lose sales and may have to lay off some of their own staff.  Even the local deli down the street will suffer.  This is the ripple effect.
To make matters worse, these dealerships aren’t the only ones who will be receiving bad news this week. General Motors Corp. says it is notifying 1,100 dealers that it will not renew their franchise agreements next year.
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