Auto Plus to sell assets to backup bidder following auction issue

By Sarah Lizee

Olympia, Wash., May 22 – IEH Auto Parts Holding LLC, doing business as Auto Plus, received court approval to sell most of its assets to backup bidder Factory Motor Parts Co. following a muddled auction process.

Counsel for the debtor told the U.S. Bankruptcy Court for the Southern District of Texas at a May 19 hearing that, after 79 rounds of bidding at auction, a joint bid from Fisher Auto Parts Inc. and Parts Authority was named the winning bid for most of the assets.

However, the debtors found out over the weekend that the joint bidders may have been given inside information from one party of the debtor during the process that other bidders weren’t aware of.

Counsel for the debtor said that party is being terminated as a result.

On May 20, the debtors worked to designate backup bidder Factory Motor Parts as the winning bidder for the assets.

Lincoln Partners Advisors LLC is the investment banker.

The Kennesaw, Ga.-based aftermarket auto parts retail chain filed bankruptcy on Jan. 31 under Chapter 11 case number 23-90054.

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