If you drive along Fauntleroy, you’ve probably noticed the lots are finally starting to empty out, more than 2 weeks after closing:
Today we have more details on what’s going on, now that court documents are available for the agreement reached in the Huling suit to evict GEE (we reported last Tuesday that the Huling lawyer said the agreement was in the works to give the Gees till November 30th to clear out):
First excerpt of note is in the document “Declaration of Ryan Gee” filed a week ago in response to the eviction suit. From page 4, Ryan Gee explains why November 30th:
“Because we have closed the dealerships, we intend to tender possession back to Huling as soon as possible. However, we cannot do so immediately for two reasons: (1) we have a very large inventory that is going to be re-purchased by the automobile manufacturers; and (2) we need to auction the fixed assets (e.g., hoists from the cars). I anticipate that the repurchase of the vehicles and the parts inventory, and the auction, will be accomplished by November 30, 2007. The inventory consists of approximately 300 vehicles and an enormous parts inventory. To get an idea of the size of the parts inventory, it takes eight or nine people a full day at one store (and we have three stores) just to count it. I estimate that to move the parts in an orderly fashion and to re-stock it in a warehouse would likely take ten men at least three days. I believe we would need a warehouse facility of 11,000 square feet for two months. I am advised that warehouse space in the Seattle area is $.60 per square foot, but that on a short-term basis one can expect to pay a 100% premium. For two months, then, I assume it would cost 26,400. An estimate of the total cost to warehouse the parts, including hiring labor to move the parts, is in excess of $36,000. As to the 300 new cars, I cannot currently estimate the cost of moving and storing them, as we would need approximately 3 acres of secure storage, plus the cost of trucking them.”
The remainder of the 127-page document “Declaration of Ryan Gee” consists of the sales agreements that GEE and Huling originally entered into — more than 100 pages worth — plus copies of newspaper articles about the ex-Huling employees’ arrests last January. Then, filed two days later, last Wednesday, is the agreement the two sides reached. Since it’s only five pages, we’ve uploaded it here. Nothing particularly sensational, just an affirmation of the deal that GEE will vacate by November 30th, after this:
“Agreed that the lease between the parties was terminated effective October 10, 2007, and Defendant’s [WSB note: GEE] tenancy of the premises is forfeited in accordance with this Stipulation …”
As for the GEE lawsuit against Huling, that one will take a while to make its way through the courts, but we’re keeping watch and will continue checking with both sides.