The bankruptcy attorneys for Orange County’s EZ Lube have filed for Chapter 11 bankruptcy on its behalf.
From the Orange County Register online:
“Santa Ana-based EZ Lube — a chain of 82 largely SoCal oil-change shops — says it has filed for bankruptcy protection and has plans to sell its assets. The company says the financial dealings should have no impact on its stores or customers.
EZ Lube’s court papers blamed its financial woes on rising gas prices that cut driving and need for oil changes, high debt levels and negative publicity from a state and Orange County probe into EZ Lube’s sales procedures.
According to bankruptcy court papers, EZ Lube — which employs 1,000 people — lost $44 million in 2007 and was down another $8 milion in 2008’s first nine months. Sales were off 10% to $66 million in 2008’s first 10 months.
EZ Lube, which entered bankruptcy Dec. 9, may auction its assets off in March. It already has a big by a group that includes its current lenders.
Says CEO Marc Graham in a statement on EZ Lube’s Web page: ‘Completing the sale through the Chapter 11 process will allow us to significantly reduce our debt and undertake an orderly transition of ownership. Throughout the sale process, servicing our customers and providing valuable preventative maintenance services is our priority.’”
It is unclear if any of the EZ Lube’s in Orange County will be closed, or if they will all remain open during the reorganization process. EZ Lube has many locations in Orange County, including: Costa Mesa, Laguna Woods, Tustin, Orange, Mission Viejo, Laguna Hills, Lake Forest, Huntington Beach, Dana Point, Fullerton, San Clemente, and Yorba Linda.
To find the nearest EZ Lube near you, click here
