Franchise Services of North America Inc. has announced that its wholly-owned subsidiary Simply Wheelz LLC — which does business as Advantage Rent a Car — has determined to cease operations at 30 Advantage locations effective today, Jan. 24.
Advantage has reached an agreement with Dollar Rent A Car whereby Dollar has agreed to provide car rental services to those customers who hold active Advantage reservations at all closed locations beginning Jan. 24, according to FSNA.
The decision to cease operations at certain Advantage locations was made in connection with the proposed sale of Advantage assets to The Catalyst Capital Group Inc. Catalyst was 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, says FSNA. However, the company will need to complete a number of procedural matters and arrangements with third parties before this sale can be completed.
One such matter involves a careful internal review of the 70 U.S. Advantage locations. Accordingly, in order to help strengthen and position the Advantage brand for sustainable growth going forward, Advantage has made the decision to cease operations at 30 of these locations, according to FSNA. The specific locations to be closed were not named.