Iron Mountain Autoplex auctions fall short of goal

WINDSOR, Oct 30, 2009 (Greeley Tribune - McClatchy-Tribune Information Services via COMTEX) -- IRM | Quote | Chart | News | PowerRating -- The two auctions to divvy up the equipment and furnishings left at the former car dealerships that made up Iron Mountain Autoplex didn't draw quite the money auctioneers were after.

The weeklong Internet-only auction and the live auction Wednesday netted not quite $500,000, said Bob Raudonis, a liquidation specialist contracting with Chrysler Financial, which is now in control of the dealership group. He wouldn't give exact amounts of the sales, nor would the auctioneer, Roller Auctioneers of Denver.

Raudonis was on site Thursday working to clear paths in the snow so bidders could pick up their items.

"Our biggest chore is getting the (snow) drifts out of the way so we can get to all the items," Raudonis said. "That's the daunting task today."

In all, the auctions sold off more than 1,400 "lots," which could be individual items or groups of items. More than 500 bidders braved the snowstorm Wednesday to show up at the live auction at the dealerships on U.S. 34 and Weld County Road 17. There were 711 lots at the live auction, chiefly devoted to heavy equipment, vehicles and tools. Online, more than 700 people bid on 790 items such as office plants, furniture, televisions and games.

While the good news is that everything sold, the bad news was that it didn't quite bring the prices. Nope, not quite $1 million.

"I'd be a much happier man if it did," Raudonis said. "All the circumstances being what they are with the economy, and a number of other auto dealers closing and this equipment being plentiful. It's all about supply and demand."

Some of the better deals Wednesday came in the form of tool sales, Raudonis said.

"There were a number of small tool lots that sold for $10 and $20, and some where these people were paying $30 when the original costs were $3,500 and $4,000. ... I saw a few smiles at $10 and $20, and I would have smiled too."

Some lots actually brought in good or better than expected bids, Raudonis said. He added that the hoists and trucks all sold well.

"One of our best return pieces was a Dodge truck with a plow and a slat spreader," he said. "It brought good value and a lot of attention and bids."

The autoplex has been idle since August, after the final groups of cars at the dealerships sold to other dealers or auto auctions.

Former owner John Chamberlain surrendered the dealerships to Chrysler Financial in July after the state Department of Revenue shut the doors. Chamberlain, struggling since Chrysler declared bankruptcy in May, lost his financing, which was through Chrysler for all of his dealerships. He also continues to face charges of several state violations involving failing to pay for trade-in vehicles. Those hearings will run daily in the first week of December.

When Chamberlain surrendered, Chrysler Financial was left to liquidate the entire operation, including about $7 million in inventory. There was about

$30 million in land and buildings, but those were tied up mostly in New Frontier Bank loans, which are being sold for pennies on the dollar to bidders throughout the country.

Cushman and Wakefield Global Real Estate Solutions in Denver is listing the buildings for sale. Its office was closed Thursday because of weather, and representatives couldn't be reached for comment.

Chrysler officials have said they want to remain in the Greeley market, but not necessarily at the Iron Mountain site; they are evaluating potential franchisers of the Chrysler-Jeep-Dodge brand.

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