La. Shop Files for Bankruptcy in Wake of Lawsuit
Jan. 3, 2019—Owens Collision and Service Center, of Baton Rouge, La., has filed for Chapter 7 bankruptcy, The Advocate reports. A lawsuit was filed against the body shop last year by Louisiana attorney general Jeff Landry's office, the publication reports.
According to The Advocate, car owners who wrecked their vehicles were forced to sign a repair contract after being towed to the body shop. Customers allegedly had to sign the document even if they didn't want the company to fix their vehicles, the publication reports.
In addition, a woman testified that the shop allegedly held her car for ransom after she towed it there, but decided against having the body shop doing the repairs, The Advocate reports.
According to court documents, the company owed $190,492 to creditors and also had $530,178 in assets.