LMP Automotive Holdings Inc. has lost a more than $2 million deposit after its deal to buy an 85 percent stake in 10 franchised dealerships in Florida was terminated last month.
The publicly traded Fort Lauderdale, Fla., company, in a Wednesday regulatory filing, said dealer Alan Wildstein “was entitled to retain earnest money deposits” totaling $2,000,500 because asset purchase agreements were terminated Feb. 16.
Wildstein declined to comment.
It marks the second seven-figure deposit the group has forfeited in recent months amid acquisition deals falling through. In that deal, LMP lost a $1.5 million deposit after its plan to buy five import dealerships in Texas from Steve McGavock was terminated Jan. 31.
Last month, LMP said it planned to cancel its pending dealership acquisitions because it was unable to obtain financing to pay for them. At least one other of LMP’s seven pending deals has been terminated, for Chantz