Contact Us

Strauss Auto Closes Store Locations Abruptly

Strauss Discount Auto has filed a Chapter 11 bankruptcy petition and abruptly closed all 45 of their  locations in New Jersey, New York and Pennsylvania.

A sign offering career opportunities at the Strauss Auto in Woodbridge as a sign is taped in the window announcing the store's closing.
A sign offering career opportunities at the Strauss Auto in Woodbridge (Loretta Grace)

Parent company SDA Incorporated filed a 15-page Chapter 11 Bankruptcy petition last night with the Newark Bankruptcy Court according to a clerk.

The company is being represented by Lowenstein Sandler Attorneys at Law in Roseland, according to the petition.

According to a message sent to the New Jersey 101.5 Facebook page, employees were told not to report to work today.

A sign posted in the front window of the Woodbridge location indicated the store had closed permanently.

 

 

WHAT IS CHAPTER 11?

Sign in the Strauss Auto in Woodbridge announcing its closing.
Sign in the Strauss Auto in Woodbridge announcing its closing (Loretta Grace)

Chapter 11 bankruptcy is a corporate reorganization of debt. Other bankruptcies are filed primarily by individuals, according to bankruptcy attorney Douglas Mitchell Esq. owner of Mitchell Law Offices in Newark. “It’s common practice when your liabilities exceed your assets but you still have a business of value that can continue to make money,” Mitchell explains.

“Typically when an eleven is filed the business wants to stay open or continue in some capacity,” Mitchell explains.

Strauss Auto has not said if it plans to stay open, and attorneys representing the company have not responded to Townsquare Media’s request for information. According to their filing, the warm winter weather and high fuel costs combined to make customers put off repairs.

“Where a Chapter Eleven is concerned there is a possibility that some of the stores might reopen at some point or the business might take on a new capacity,” Mitchell says. “All may not be lost.”

The newest petition lists assets and debt both exceeding $10 million.

The company acted quickly to shut itself down. Its web sites were non-functioning save for a home page displaying a single customer service phone number, 1(800) 787-4554. Their Facebook page was  removed.

Phone calls made to several of their New Jersey locations including Beachwood, Parsippany, Toms River and Wayne were all unanswered as was a phone call to their parent company, SDA Inc. in South River.

Are you affected by this closure as a customer or employee? Let us know in the comment section.

Leanne Vuksanic and Tom Mongelli contributed to this report.

ROOTS IN NEWARK

According to an archived version of their website, Strauss Discount Auto was founded in 1919 by two friends named Herman Schlenger and Harry Roth. Their first store, located on a street corner in Newark was originally known as Roth & Schlenger Home and Auto Supplies and continued to  expand by opening retail stores throughout north Jersey.

In 1954, R&S Home and Auto opened its first superstore.

In 1983 R&S merged with a New York Company known as Strauss Stores. Strauss Stores was founded in 1929 by Isaac (Izzy) Strauss with the opening of five stores and a warehouse in Brooklyn. With the acquiring of the Strauss Stores the company was renamed R&S Strauss, creating the largest retailer in the Northeast, consolidating about 70 stores.

STRAUSS AUTO NEW JERSEY LOCATIONS:

 

Strauss Auto in Woodbridge
Strauss Auto in Woodbridge (Loretta Grace)

Bergenfield
Bloomfield
Brick
Dover
East Hanover
E. Rutherford
Harrison
Hasbrouck Heights
Hillside
Jersey City
Lakewood
Linden
Lodi
Middletown
Milltown
N. Bergen
Neptune
Newark
North Plainfield
Parlin
Parsippany
Passaic
Roselle
Toms River
Wayne (2)
Woodbridge

 

More from WOBM AM

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://wobmam.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on WOBM-AM 1160 & 1310 quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on WOBM-AM 1160 & 1310 quickly by logging in with your Facebook account. It's just as secure, and no password to remember!