Fox Collision Closes

[Wilbur]

According to a story on Channel 6 tonight, Fox Collision has closed all 18 of their facilities.  The company will hold a press conference Monday, but a letter sent to all employees says the company hasn't been profitable for the past couple of months and blames the insurance industry for short changing them.

I've had two cars there and was thrilled with my experience with them.  They have to be the biggest body repair company in the area and receiving the most work.  How can you be going broke based on that?  Doesn't insurance, like mechanical facilities, use standards for how long it takes to repair certain items, which results in so much $$$$ being paid?

[Breadburner]

I bet they were in debt up to there eyeballs.....When you run tight like that a couple of bad months can put you out of biz...Especially poor or underperforming locations....

[Conan71]

They must not have been that well fiscally-managed if they cratered from only two months of un-profitablility.  A business as large as that should have had plenty of cash stock-piled for just such circumstances.  You would also think they would have a generous line of credit- that must have dried up as well.

They were spending money like crazy and expanding like a fast food franchisor.  They have really improved the image of the body shop but that comes at a high cost.

That's a shame to see it happen, but if you have a lot of money going out it takes even more coming in to sustain the operations.  They also were spending a fair amount of money for limited NASCAR sponsorships and for the Chili Bowl as well.

[HazMatCFO]

My wife's car was just repaired at Fox  and it took them 5 weeks to do it. When we got it back, the job was done well for you can't tell the accident happened and the car drives like it was brand new. The problem is that it took about two weeks longer than expected due to their errors.

Too bad they're going out of business, the experience was fine except for the delay.

[TURobY]

As for my experience, they took two months on fixing my S.O.'s car and they forgot to secure my bumper. One week later, the bumper falls off. He took it back in, and they said they wouldn't fix it since "someone must have hit you in a parking lot and loosened it".

Good riddance.

[inteller]

quote:Originally posted by TURobY

As for my experience, they took two months on fixing my S.O.'s car and they forgot to secure my bumper. One week later, the bumper falls off. He took it back in, and they said they wouldn't fix it since "someone must have hit you in a parking lot and loosened it".

Good riddance.

they expanded way too fast and I think the insurance industry knew and hung them out to dry.  Now with one less player in town the ins agency can further tighten their payouts.  I think one thing that ins industry hated about Fox was the efficiency in which they processed claims since they were all computerized.

Now, I never liked Fox...but I like the ins industry even less.  The ins industry is a cadre of complete thugs who never look out for their policy holders....just themselves.

[sgrizzle]

I've posted before but I've been twice and had horrible experiences both times. If they got 80% of what they estimated, the would make a profit.

Good riddance, I say.

[spoonbill]

quote:Originally posted by sgrizzle

I've posted before but I've been twice and had horrible experiences both times. If they got 80% of what they estimated, the would make a profit.

Good riddance, I say.

They made claims in their ads that "it was your right to demand quality parts for your repair".  I don't doubt that the insurance industry black-listed them.  I think they probably had a hard time getting paid.

The Chinese have been making after-market body parts for american cars for years and they are far less expensive.  Insurance companies push for the least expensive repair they can get.  After all, they don't have to sell your car!

[sgrizzle]

quote:Originally posted by spoonbill

quote:Originally posted by sgrizzle

I've posted before but I've been twice and had horrible experiences both times. If they got 80% of what they estimated, the would make a profit.

Good riddance, I say.

They made claims in their ads that "it was your right to demand quality parts for your repair".  I don't doubt that the insurance industry black-listed them.  I think they probably had a hard time getting paid.

The Chinese have been making after-market body parts for american cars for years and they are far less expensive.  Insurance companies push for the least expensive repair they can get.  After all, they don't have to sell your car!

They told me my totalled car with no major previous dings had $1800 in hail damage. Hail damage on a totalled car?

[tim huntzinger]

KJRH published a letter from Fox with their story.  What a jerk, to blame the insurance companies for Fox to suddenly leave his employees and customers SOL.

[Conan71]

After reading his letter, DRP's sound a lot like PPO's or HMO's.  Pre-negotiated prices for various procedures.  If, what he's claiming happened, then I'll be interested to see if he really can affect change within the industry.

Personally, I'm still stuck on the whole thing of having 18 centers, I believe four of each in Tulsa, OKC, and Wichita.  That's a lot of redundancy, utilities, and overhead.

I understand a guy having pride in his business, but if you look at the exterior architecture, interior design, and signage, he was dumping a ton of money into the physical plant.  Likely unnecessary amounts which had to have increased his overhead and debt service to absurd amounts.

On one hand I feel sorry for the guy, but on the other all I can say is: "Well, duh!!!"

[sgrizzle]

After getting my $7,000 bill from cox to replace a hood, bumper, to headlights and a radiator it is hard to me to believe they were skimping in any way. Fox Collision was very high dollar with their coffee shops, webcams, and shiny decor.

Sounds to me like he was forced to quit spending insurance company money on coffee and race cars and didn't want to do business that way.

[Conan71]

More news:

Looks like two Wichita locations re-opened as "Fox Body Shop".

http://www.bizjournals.com/wichita/stories/2007/10/29/daily2.html

According to KRMG news, there was a sign on the employee entrance today at the 61st & 169 location that said something along the lines of  "All contents are property of the Federal government."  

Hmmm, must be a tax issue as well.

[Kashmir]

Interesting about the tax issue...At least that billboard won't be leering at me at 41/Sheridan anymore.

[Conan71]

Either that, bankruptcy, or insurance fraud, that's the only other things I can think of for the fed's to be involved.