SCOTTSDALE, Ariz. -- A top Arizona employer for more than 25 years with more than 1,000 employees, Danny's Family Cos. is nearing completion of the restructuring of its car wash/gas station/convenience store operations in the greater Phoenix area. Danny's filed for Chapter 11 reorganization in early 2010, citing a combination of significant challenges, in particular the global credit crisis and the weak Arizona economy.
Since its filing and as part of its restructuring, Danny's has sold or closed two underperforming locations, has made significant changes in its operations [image-nocss] and has worked diligently with lenders, landlords and suppliers to develop an acceptable plan for reorganization of the company, it said, all toward the goal of protecting jobs and ensuring the long-term success of the company, its employees and its creditors.
Now, as part of the restructuring of the company, founder and CEO Danny Hendon announced that he has filed for personal Chapter 11 bankruptcy protection (click here for previous CSP Daily News coverage).
According to Hendon, his personal filing is necessary to protect the company from any disruption caused by claims arising from Hendon's involvement in real-estate ventures unrelated to the company, which, like so many others, fell through due to the crumbling real-estate and financial markets.
"I said from beginning that my first concern has been for my employees and to the community where I have built this business over the years," said Hendon, "and that I would do anything I could to save those jobs. So while this was a difficult decision for me personally, I am convinced that it was necessary to help preserve the jobs of Danny's employees and the future of the company."
He added, "This has been a challenging couple of years, but Danny's has weathered the difficult economic times due to the loyalty of our customers, the hard work of our employees, and the cooperation of the company's lenders, landlords and suppliers. I simply could not sit back and allow these outside parties to jeopardize all that we have worked so hard to achieve throughout this process."
Hendon continued: "This filing will help the company stay on track as it prepares to emerge from the reorganization process. I have always said that we will come through this stronger and better as a company, and this will help ensure that Danny's will remain one of Arizona's top local businesses and employers for many years to come."
Danny's Family Car Wash is a family-owned company with more than a dozen locations across the Valley in the Scottsdale, Ariz., area.
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