Franchise Services of North America announces the closure of 30 locations of Advantage Rent a Car
RIDGELAND, MS--Jan. 24, 2014: FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces that the Company's wholly-owned subsidiary, Simply Wheelz LLC ("Simply Wheelz"), which does business as Advantage Rent a Car ("Advantage"), has determined to cease operations at 30 Advantage locations effective January 24, 2014. Advantage has reached an agreement with Dollar Rent A Car whereby Dollar Rent A Car has agreed to provide car rental services to those customers who hold active Advantage reservations at all closed locations beginning January 24, 2014.
The decision to cease operations at certain Advantage locations was made in connection with the previously announced proposed sale of Advantage assets to The Catalyst Capital Group Inc. (on behalf of one or more funds managed by it) ("Catalyst") as the prevailing purchaser in the auction of certain Advantage assets as part of the Simply Wheelz insolvency proceedings, as approved by the United States Bankruptcy Court for the Southern District of Mississippi.
Simply Wheelz hopes to complete its sale to Catalyst in the first quarter of 2014. However, the Company will need to complete a number of procedural matters and arrangements with third parties before this sale can be consummated. One such matter involves a careful internal review of the 70 operating locations across the United States. Accordingly, in order to help strengthen and position the Advantage brand for sustainable growth going forward, Advantage made the decision to cease operations at 30 of these locations as described in this press release.