Troubled Washington auto dealer seeks bankruptcy protection

The Washington auto dealer under fire for allegedly failing to pay off customers' trade-in vehicles filed for bankruptcy Wednesday.

Last week, the Washington Attorney General's Office filed a complaint against Gilbert Auto Group and its owner, Mark Gilbert of Walla Walla. It detailed more than 40 instances where loans on vehicles traded in allegedly were not paid off as required by law. The Gilbert Ford dealership in Moscow was among those listed in the complaint.

Gilbert is also being sued by the financing departments at Nissan and Honda for a total of $6.5 million. And College Place, Wash., sued Gilbert for $2 million last month, alleging that he didn't reimburse the city for a road it built to serve his dealership there.

In a statement, Gilbert Auto said that although it has filed for Chapter 11 restructuring, its dealerships in Moscow, Moses Lake, Pendleton and the Walla Walla area will not close.

Mary Lobdell, senior counsel in the attorney general's Consumer Protection Division, said all but one of the outstanding debts from the Moscow dealership have been paid.

But about $300,000 in other consumer debts remain outstanding, she said. On Wednesday, she said that even though her division does not represent the consumers directly, it will still work on their behalf to ensure the bankruptcy does not keep them from getting the money they are owed.

"I will be in court, pushing continually to make sure these are paid off," Lobdell said.

Gilbert said the reorganization will take 90 to 100 days, and will be a step forward for his company. He also said his commitments to community partners, sponsorships and other supported programs will continue throughout the process.

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Mills may be contacted at

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