Phoenix-Area Car Wash Business in Foreclosure

Posted on Jul 05, 2014

In 2010, 20 companies affiliated with Danny’s Family Cos., a Scottsdale-based firm that includes Danny’s Family Car Wash, filed for bankruptcy. The car washes have been a Valley staple since the 1980s, and has grown to over twenty locations. Owner Danny Hendon also filed for bankruptcy about one year later in July of 2011, and both cases were approved in December of that year.

 

On September 16, there is a scheduled foreclosure auction set for 13 Danny’s Family Car Washes across the Phoenix area. Earlier last month, lenders filed to foreclose on these car washes. Hendon has been facing mounting financial challenges on both personal and business fronts, recently selling his own personal home in Paradise Valley.

 

Financial problems are only the surface of the pressure that Danny’s Family Car Wash is currently under. In 2013, an Immigration and Customs Enforcement raid indicted fourteen managers and supervisors in an employment scandal that stemmed from a 2011 raid. The earlier raid discovered that about 50 percent of the company’s employees were hired illegally; the identified management fired then rehired many of these employees under new names. Danny Hendon was not one of the indicted individuals.

 

The 2013 raid and immigration fraud investigation was one of the largest in Arizona’s history, and with serious crimes allegedly occurring—such as fake identification and social security numbers being given to illegal hires—it will be an uphill battle for the remaining Danny’s locations to keep the business strong.

 

The Valley bankruptcy attorneys at Curry, Pearson & Wooten are eager to see how Danny’s Family Cos. emerge from the reorganization, and will follow the story as it unfolds.

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