Pittsfield Licensing Board Greenlights Nissan DealershipBy Brittany Polito, iBerkshires Staff
05:18AM / Wednesday, December 18, 2024 | |
 The Licensing Board approved a license for the new owners of the Nissan dealership in Pittsfield. The ownership transfer was to take place this week. |
PITTSFIELD, Mass. — Nissan of Pittsfield will operate under new ownership as "Bella Nissan of Pittsfield" after a problematic past.
On Monday, the Licensing Board approved a 2024 Class 1 auto dealer license for the 25 West Housatonic St. business. New owners Javier Columbie and Benjamin Farber want to turn the dealership around after it was investigated for failing to pay off the loans on trade-ins, among other complaints.
Bella Nissan of Pittsfield will have to pay a renewal fee for 2025, but the company wanted to prevent the business from "going dark" in the interim. During the meeting, the former license owned by Team Nissan Inc., which expires on Dec. 31, was revoked.
"Given what's happened with Team Nissan, their bad behavior, and given your very noble actions vis-a-vis the community, I think we're inclined, and I don't want to speak for everybody up there, but we're inclined to do what you want us to do," Chairman Thomas Campoli said.
The purchase agreement reportedly includes repaying liabilities — especially outstanding car loans —with funds held in escrow. Farber said affected consumers are the No. 1 priority, and then other entities such as landlords and banks will be repaid.
The closing documents were expected to take effect on Tuesday after Team Nissan signed off.
"There's actually still three vehicles belonging to customers who purchased vehicles there that were never paid off, like people had come and complained about," he explained.
"There are a few other people who, maybe you haven't heard from, who had some vehicles that weren't paid off. Part of those funds are being earmarked for that. There's funds to complete the registrations and get plates for everybody who's part of that."
A continued show-cause hearing was held for Nissan of Pittsfield last month, when the board heard from the Pittsfield Police Department, customers, and the new owners. Police Lt. Marc Maddalena said there were five individuals who had to make two car payments because of the business' practices and all were made whole though it "took a little bit of pulling some teeth."
"I'm very confident that they are going to take care of what they need to," said Denise Bouchard, a Nissan of Pittsfield customer who said she is paying nearly $600 a month when her original payment was supposed to be $560 for a car that needed repair the day after she drove it off the lot.
The board wanted to make sure that revoking the former license wouldn't benefit the licensee. It was made clear that the new owners need it revoked to operate in the next couple of weeks and ensure that customers and creditors are made whole.
"It allows the money to come in from our purchase of it, to take care of all a lot of the outstanding things," Farber said, explaining that there are tens of thousands of dollars owed in back rent alone.
He said Team Nissan "sort of hit a real cannot move forward point" last week when they weren't able to make payroll and they want the business to be taken over to resolve the issues.
"Without this deal actually being consummated. We won't have the ability to actually sell any cars," he said.
"We don't even have access to the finance paperwork to do any deals and things like that because that all comes from the manufacturer once this reaches fruition."
Board member Kevin Sherman was disappointed in Team Nissan's actions and that they did not show up for both hearings.
"If the revocation of the license and the immediate work by these gentlemen makes the vendors whole, landlords whole, and to me just as important, if not more importantly, the customers who deserve to have their agreements upheld if it makes them whole, I'm okay with revoking it," he said.
He applauded Farber and Columbie for being good businessmen to his knowledge and "wanting to make this work out for everybody."
Farber reported that they spent most of the day reviewing a closing schedule for the sale which deals with the purchase of the business and the debts that are being repaid.
"The fact is, the last two largest creditors, which are Nissan and Nissan Motor Acceptance Corp., which is a bank from Nissan, are basically scrambling for what's left because it's really pennies on the dollar from for what they're owed," he said.
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