Auto center’s bankruptcy won’t affect local employees

WASILLA — Customers won’t notice the store is undergoing bankruptcy proceedings, managers with Johnson’s Tire and Service said Thursday.

The company filed voluntary Chapter 11 bankruptcy in Federal Court June 15. The largest such holding is to construction firm H Watt & Scott Inc. for $400,000. The total amount of unsecured holdings is given as about $1.5 million, ranging from the construction claim to $6,000 owed Matanuska Electric Association.

According to a list of archived projects on the Anchorage construction company’s website, a tenant improvement for a new tire shop was completed in May 2013. Two lawsuits involving the construction company sprang up in Anchorage court shortly after, which resolved May 18 in favor of H. Watt & Scott.

The company claims between $10 million and $50 million in assets, and about the same in liabilities, according to court documents.

A Chapter 11 bankruptcy, also known as a reorganization bankruptcy, essentially constitutes a freezing of the creditors’ ability to collect on those debts, which allows companies to restructure their assets to begin to make payments on them.

The bankruptcy won’t affect consumers and 13 employees at the Alaska-based company’s 751 E. Palmer-Wasilla Highway store, said assistant manager Jesse Tumbloo.

“We’re going to operate business as usual,” he said.

Tumbloo couldn’t immediately quote revenues for the Wasilla branch, but said business is good.

“During the busy season when we’re changing over, we’ll do well over 100 changes a day,” he said.

Contact Brian O’Connor at 352-2269, brian.oconnor@frontiersman.com, or on Twitter @reporterbriano.