Breaking: Tricolor Auto Group (TAG), the seventh largest independent used car retailing chain in the U.S., is expected to file for bankruptcy today, according to internal sources close to the company's situation.
The development follows confirmed reports that an unidentified bank took control of TAG on Friday, placing 80-90% of its workforce on temporary leave and suspending operations across Texas, Arizona, and California.
The timeline: According to one source, company leadership had been engaged in high-level discussions about business expansion and potential lending partnerships as recently as three weeks ago. Those efforts were abruptly discontinued, with senior stakeholders indicating no interest in continuing turnaround efforts.
The source indicated the bankruptcy decision followed the discovery of significant financial complications within the company's lending operations, though specific details about the nature of these issues are unverifiable at this time.
The shutdown: Last Friday's operational halt resulted in the vast majority of TAG's workforce being placed on unpaid leave, with workers told they would receive updates about potential reinstatement by early October.
Company systems were disabled and payroll suspended during what management described as an internal review process.
What we’re watching: Sources explained that rather than bringing employees back, the company is expected to implement permanent layoffs affecting most of its workforce as part of the bankruptcy proceedings, though no official announcement has been made.
Editor's note: Claims regarding the company's financial status and potential bankruptcy filing are based on source reporting and have not been independently verified through official company statements or court filings. CDG News attempted to reach Tricolor Auto Group for comment but received no response.
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