More on Heartland Jiffy Lube

Getting more of the details regarding the bankruptcy filing of Heartland Automotive Holdings (dba Jiffy Lube). You can read the legalese of the filing here. You can read Heartland Automotive’s announcement here. Interesting that Heartland notes its disputes with Jiffy Lube International, and also hints that if the two sides cannot work out an agreement, Heartland will ask the bankruptcy court to terminate its franchise agreement with JLI.

About National Oil & Lube News

National Oil & Lube News is the fast oil change industry's oldest and largest trade publication. Started in 1986 by Steve Hurt (a former fast lube owner) and David Arrington, NOLN has grown and evolved right alongside the fast lube industry. Here at NOLN, our aim is to help fast lube operators with every facet of their business, from operations to technical issues. Our monthly magazine and this regularly updated website contain everything from technical tips, recall announcements and service guides to articles on handling customer complaints, building your brand and making your business the best it can be. With tips and advice from experts both inside and outside the industry, you're sure to learn something that can help your fast lube business grow and prosper.
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One Response to More on Heartland Jiffy Lube

  1. Anonymous says:

    In a bankruptcy, the allegiance of the board and the executives changes from shareholders to creditors. Creditors have significant control over the business, as does the court. It is never “business as usual”, as every move the company makes is subject to objection by the court and the creditors. Consumer actions against the business are stayed, as are other actions. A bankruptcy of a franchisee is even more difficult, as the franchisor becomes one of the largest creditors, and can claim huge damages, as well as control of the franchisee’s properties through contingent assignment agreements. Executives can also be held to non-compete agreements, which can keep them from running the business as an independent. The Heartland case will be a very important one for franchisees to pay attention to, especially since many, if not most, bankruptcies do not result in a successful restructuring of the business.

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