DALLAS (CBSDFW.COM) – The lender of an embattled North Texas car company repossessed fifty luxury vehicles from a Dallas dealership today.
Alfa Romeo of Dallas is run by Kamkad Automotive, a company that’s facing millions of dollars in debt, according to CEO Ken Strickler.
The Ones for Justice started investigating Kamkad months ago after dozens of customers claimed they hadn’t received their titles or license plates.
Other customers said Kamkad failed to pay off their trade-in vehicles.
A towing company loaded the cars Wednesday morning at Alfa Romeo of Dallas, as representatives from the lending company, Ally Financial, watched from afar.
Documents posted on the remaining vehicles stated the cars were destined for ADESA Dallas in Hutchins, which handles auctions.
A sign on the dealership door dated July 9 stated Kamkad had fallen behind on its rent.
“Because your rental payments are delinquent under the above lease… Melnic Ltd. has exercised its statutory and contractual right to change or modify your door locks,” the landlord’s notice read. “You will not be allowed access to your leased space until the past due rent has been paid.”
Employees with Dallas Tow Boys said they expect to start towing vehicles from Alfa Romeo in McKinney on Monday. The dealership is also affiliated with Kamkad.
Kamkad remains under investigation by the Texas Department of Motor Vehicles. The state has received at least 77 complaints about the company, according to TxDMV spokesman Adam Shaivitz.
CEO Ken Strickler did not return requests for comment Wednesday.
Strickler previously told the Ones for Justice in June he needed to resolve 40 tax, title and license transactions and 26 trade-in issues.
The state is investigating 224 open complaints regarding Kamkad-run properties in Dallas, McKinney, Arlington and Huntsville, according to spokesman Adam Shaivitz.
Texas DMV confirms the Alfa Romeo of McKinney and Alfa Romeo of Dallas still hold active licenses.
But the manufacturer filed a termination notice for Kamkad’s Hyundai of Huntsville.
The license will be closed because Kamkad did not respond to the filing, Shaivitz said.