Young Harmony and Nice Cars
A while back in one of our interminable discussions of the mysteriously well-financed phenomenon that is Young Harmony, I recall a crack someone (me?) made to the effect of, what will Young Harmony do when they get old? I guess we now may have part of the answer. According to this Dealer Business Journal report, when Ginger Bond’s father’s business – Nice Cars Inc – was bought out by a larger company last year, part of the deal included contractually obligated salaries for each of his children.
Nice Cars Inc. is a chain of six family-owned and operated buy here-pay here used car stores, four in Georgia and two in Tennessee. Co-owners of the chain, Ray Lyle Jr. and his wife Victoria, have owned the operation for almost nine years. Lyle said he was paid $25 million in cash and issued 6.25 million shares of Manchester Inc.’s common stock, bringing the total value of the acquisition to $72.5 million. In addition, the owners of these entities will receive five-year employment contracts to continue running the dealerships. The company financed the cash portion of the purchase price through the utilization of its $300 million credit facility.
Three of the Lyle’s children, Ray Lyle, II, Robert Lyle and Ginger Bond, have also been given five-year employment contracts.
But that, evidently, was not the end of the story. Chattanooga News Channel 9 is reporting that Nice Cars appears to be in a bit of financial pinch, and the new owners have questions for the Lyle family. Or, as the headline puts it: “Lawsuit Claims Nice Cars Inflated Its Worth.” Money quote:
Our investigative team has been digging into the financial problems of Nice Cars, formerly owned by the Lyles family of Fort Oglethorpe, Georgia.
Employees and businesses who work with the company have not been paid for two pay periods. The used car lot sold to a Texas company but is in millions of dollars of trouble.
After multiple attempts, we finally obtained a 50 plus page federal lawsuit filed in New York City. Manchester Incorporated wants big money out of the Lyles family.
Late this morning, several contracting businesses approached the new company, wanting their money.
One repossession agent told the Manchester executives, “That’s what we’ve asked of Nice Cars for three weeks. Give us an explantation, give us a time. They wouldn’t even give us an explanation except Manchester made a bank routing error. And we’re waiting on the funds to be transferred to the payroll account.”
No word on whether the payroll difficulties have affected the Lyles’ children’s salaries. Hat tips to … well, you know who you are.