ALBUQUERQUE, N.M. — An Albuquerque car business whose owner won a “dealer of the year” award in 2014 has filed for Chapter 11 bankruptcy reorganization.
ReCARnation Total Automotive Solutions, owned by Marc Powell, filed for bankruptcy on June 2 in U.S. District Court in Albuquerque. The filing lists assets of $1.59 million and liabilities of $2 million.
ReCARnation focuses on reconditioning older cars rather than selling people new cars that they might not be able to afford.
Powell, who took over the company in 2010, developed a repair and financing model to give owners the option of extending the lives of their cars rather than paying a hefty down payment and years of debt on a replacement vehicle.
Powell said Wednesday he did not think the bankruptcy called into question his business concept. “It’s more to do with the execution to date,” he said.
“There are so many multi-varied factors,” he said. “There’s a lot going on here. The whole point of reorganization is to allow us to focus on that vision we’ve had for so long. We just need some time and space to get it done.”
ReCARnation, located near Louisiana and Central, also had a sales lot on Lomas NE, but it is now closed.
Powell won the national “Quality Dealer of the Year” from the National Independent Automobile Dealers Association in 2014 and an Ethics in Business award in New Mexico a year later.
The bankruptcy, filed under the name 5K Car Store Inc., lists about $263,000 in secured claims and $1.8 million in unsecured claims.