Reagor-Dykes bankruptcy filing sends ripple effects through Lame

Reagor-Dykes bankruptcy filing sends ripple effects through Lamesa

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LAMESA, Texas -

The bankruptcy proceedings of the Reagor-Dykes Auto Group are affecting considerably more than just the employees and the executives. It is sending economic tremors through each community the dealerships call home. 

When the Walmart closed in Lamesa two years ago the outlook was bleak.

"We were scared to death when Walmart closed cause we just didn't know how it would affect us," said Scott Leonard, President of the Lamesa Economic Development Corporation. 

Little did he know, the town would make a comeback from the loss.

"It turned out really pretty good," Leonard said. "I mean, those sales were absorbed by the community elsewhere and it's been good for a lot of the smaller businesses."

Now the small West Texas town is facing what could be an even more daunting future; the loss of a second economic giant, the Spike-Dykes Ford and Lincoln.

"A lot of people from Lamesa worked out there, a lot of really good folks and they're just sitting out there in the unknown waiting to find out whether they're going to have a permanent job or not and what's going to happen in the next few weeks. So we're very concerned about them and the economic effect it has on their families."

It is not just the loss of jobs that has him concerned.

"We know that a dollar spent here multiplies about seven times. So if you take away that salaried position then we lose quite a bit more in our local economy. Less groceries being bought, less gas being bought. There's also the loss of the motor vehicle tax receipts for the city. If that dealership is not replaced fairly soon then there's a loss in revenue for the governmental units."

It is more than just tax dollars though.

"Spike-Dykes was a good community partner. They were very involved and tried to purchase things locally. They supported our charities very strongly big supporters of the Lamesa Boys and Girls club. So it will have a big effect not just the immediate families but the surrounding communities."

He said there is the potential for those who are unemployed to find work with the new sand mining plant just outside of Lamesa. However, Leonard is still pessimistic when it comes to the town's economic outlook.

The Reagor-Dykes Executives are expected to be in bankruptcy court for a follow up hearing on Aug. 16.

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