Kruse auction to feature 100-plus cars

Despite concerns over the financial health of the Indiana-based auto auctioneer, more than 100 vehicles have been consigned for sale at this weekend’s Kruse International car auction.

The event is slated for Saturday and Sunday at the Glendale Renaissance Hotel & Spa, 9495 W. Coyotes Blvd. Vehicles on the auction block include a 1930 Duesenberg Willoughby, a 1927 Ford Model T roadster hot rod and a 1983 DeLorean.

But some previous participants in the Valley classic car auction have raised concerns about prompt payments for sold vehicles and unanswered calls, local media has reported.

Meanwhile, in Indiana, Kruse has sought repayment of outstanding receivables in court, which total $6.7 million, company officials have said.

In late December, the firm filed lawsuits against previous auction participants, including a customer who bought vehicles valued at $1 million and another who bought tractors valued at $1.5 million. Neither paid for the vehicles, company officials said.

“In addition to those, we expect an additional five to 15 lawsuits to be filed over these next few months,” against additional creditors, said Kruse spokeswoman Kelly Ellert.

In addition to the current and planned lawsuits seeking repayment, new systems have been put in place as a result of the issues, including a third-party escrow system to hold payments from auction proceeds, Ellert said.

“We have put in place a system where funds are guaranteed,” Ellert said.

Ellert said the company’s fundamentals are sound and pointed to a successful auction in Indiana in November that had more than 400 vehicles, she said.

And just last week, the firm announced a new general manager, John Silowsky, who will lead the company.

A press release described 2010 as a “rebuilding year.”

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