Exhibit 99.1
Company Contact: Media Contact: Broker Contact:
Hometown Auto Retailers Kevin Wilson David Politis
Corey Shaker Politis Communications Politis Communications
860-945-6900 801-523-3730 801-523-3730
cshaker@htauto.com 801-898-5520 (mobile) 801-556-8184 (mobile)
kwilson@politis.com dpolitis@politis.com
Hometown Auto Retailers Removes Chairman and a Vice President; Litigation
Commenced
Watertown, Conn. - February 9, 2001- Hometown Auto Retailers (Nasdaq NM: HCAR)
today announced that it has dismissed Salvatore Vergopia as chairman and Edward
Vergopia as vice-president - fleet operations. Hometown has terminated their
employment contracts, for cause, and replaced Salvatore Vergopia as general
manager of Hometown's Westwood Lincoln-Mercury dealership.
According to the company, Hometown suffered significant losses at its Westwood
operations during calendar year 2000 as a result of the sale and transfer of
title of limousines (worth approximately $850,000) to a defaulting customer and
as a result of Westwood's management having set unrealistic residual values on
the recourse sales of automobiles. Hometown believes these actions arose from
mismanagement and dereliction of duty by the dismissed officers and, together
with other improper actions by these officers, provided a legal basis for their
dismissals.
In response to their dismissal and the termination of their employment
contracts, the dismissed officers and Janet Vergopia filed a civil complaint
with the Superior Court of New Jersey, Bergen County, against Hometown, its
directors, officers and certain major stockholders alleging breach of their
employment agreements and the original combination agreement among the Hometown
constituent dealerships and other wrongful conduct, including age discrimination
and breach of fiduciary duty and seeking reinstatement, compensatory,
consequential and punitive damages, in an unspecified amount, back pay and front
pay, injunctive and other legal and equitable relief. Hometown intends to
vigorously defend the action brought by the Vergopia's and will seek recovery
from the Vergopia's for their misconduct.
"Westwood Lincoln-Mercury is one of the highest volume dealerships in the New
York region and proper management of its sale and credit procedures, inventory
levels and day-to-day operations is critical to Hometown," said Corey Shaker,
president and chief executive officer of Hometown. "We felt dismissal of the
Vergopia's was necessary and appropriate to meet these goals."
About Hometown
Hometown Auto Retailers sells new and used cars and light trucks, provide
maintenance and repair services, sells replacements parts and provides related
financing, insurance and service contracts through 10 dealerships located in
Connecticut, Massachusetts, New York and Vermont. Hometown's dealerships offer
13 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo,
Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, Plymouth and
Toyota. It is active in two "niche" segments of the automobile market: the sale
of Lincoln Town Cars and limousines to livery car and livery fleet operators and
the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury
factory authorized free-standing service center.
This release contains "forward-looking statements" based on current expectations
but involving known and unknown risks and uncertainties. Actual results or
achievements may be materially different from those expressed or implied.
Hometown's plans and objectives are based on assumptions involving judgments
with respect to future economic, competitive and market conditions, its ability
to consummate, and the timing of acquisitions and future business decisions, all
of which are difficult or impossible to predict accurately and many of which are
beyond the control of the company. Therefore, there can be no assurance that any
forward-looking statement will prove to be accurate.
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