At least one sad chapter closed Tuesday for beleaguered auto mogul Denny Hecker, who announced that Enterprise Rent-A-Car will buy certain assets of his Advantage Rent-A-Car out of bankruptcy for $19 million.
The bankruptcy court must first approve the sale. If it does, the deal will close in April. At that time, Hecker, who is Advantage's chairman and owner, will enter into a consulting agreement with Enterprise, officials said in a prepared statement.
It's a partial upbeat ending for Advantage, which Hecker placed in bankruptcy protection in December after closing 22 locations at airports around the country and issuing pink slips to 440 of 900 workers. The remaining operation is owned by Denny Hecker Family Ventures, with headquarters in Minneapolis and eight locations in Denver, Orlando, Salt Lake City and Phoenix.
Officials said the Enterprise transaction also applied to other unnamed properties that were recently closed.
Before the bankruptcy, Advantage and its affiliates had operated 48 locations in 16 states.
In a statement issued Tuesday, Hecker, 56, said, "I am excited by the sale of Advantage to Enterprise. I am confident that Advantage's loyal customers will enjoy the great service and the expanded network of locations offered by the Enterprise companies."
Under the terms of the asset sale, Enterprise gains the right to close or keep open any of Advantage's rental facilities. It also gains the right to lease Advantage's fleet and will own its customer lists, websites, phone lines, trademark, advertising, trade secrets and other intellectual property.
Last month, Hecker sold his Hyundai and Volkswagen dealerships in Inver Grove Heights to Pohlad Group's Twin Cities Automotive.
