Car Care Giant Brakes For Chapter 11 Bankruptcy
The Strauss Discount Auto chain has gone belly-up, taking with it more than 600 jobs citywide.
The New Jersey based retailer recently filed a petition for Chapter 11 protection in New Jersey Bankruptcy Court, saying the move was necessary after the chain encountered “insurmountable financial difficulties” for the third time in six years.
According to the filing, Strauss Discount Auto (SDA, Inc.) filed the bankruptcy petition on June 4 and is heading for reorganization.
Each of the six Strauss stores in Queens is currently in the process of closing its doors, including a repair and accessory center at 48-02 Queens Boulevard in Woodside, a company spokesperson said.
In another move aimed at tightening company purse strings, Strauss officials last year shut down a store at 46th Street and Northern Boulevard in Long Island City, saying the location suffered a significant loss of sales revenue.
New Jersey natives Harry Roth and Herman Schlenger founded the chain and opened the first R&S Home and Auto Stores in 1919. The chain managed to survive through 93 years of market changes, wavering economic conditions and the emergence of “big box” retailers, but it faltered in the face of the current economic climate, experts said.
“This is one more good retailer that just couldn’t make it in the current state of the economy,” experts said.
R& S Strauss remained constant on the Queens landscape for 93 years, servicing customer cars and offering a full line of auto accessories to generations of Queens residents.
An R&S Strauss spokesperson said the chain has not yet announced a closing date for the Queens stores.