NEW YORK — DANNY DANNY, founder and president of Ecology Auto Parts in New York, said Monday that he can no longer afford to pay his employees enough to support them and that he needs to sell the company.
Danny Dudley has run the company since 2006.
He said he will be selling his stake in Ecology to a buyer.
“This is going to be a great company that I love,” Dudley said during a news conference.
“The company is going on a journey and this is a good start.”
Dudley, 58, said that the company has become too dependent on sales.
The company was founded in 2006 by Dudley and his wife, Anne, who he married in 2014.
Dudley said he was initially told the company would grow to more than 500 employees, but his staff only grew from about 100 to 200.
In the last six months, the company’s stock has fallen almost 60 percent, according to data from FactSet Inc. The stock was down about 11 percent at $18.90 per share.
Dudley is also seeking a $1.8 million bankruptcy court filing.
His company has had trouble attracting new customers and sales.
Dudley told ABC News in January that his company had to close its doors in April due to lack of sales.
Dudys company was purchased by Ecology Automotive in 2016 for $5.4 million, which included a $200,000 loan from Bank of America Merrill Lynch.
He then sold his remaining shares of Ecological to Ecology for $8.7 million in May 2017.
Ecology Automobiles began operations in 2006, but Dudley said it was only in 2008 that he realized he could no longer pay his workers enough to stay afloat.
He said that Ecology had lost nearly $200 million and had been on a downward spiral since then.
A bankruptcy filing in New Jersey last year said Dudley had lost $2.7 billion and he had debts of more than $20 million.
Dennis Lutz, the owner of Ecologic Automobiles, said he is not going to sell his stake, but he will let his employees go when they work out a new arrangement.
Lutz said he hopes to get his employees back on the road by next year.
There are about 100 employees at Ecology, which has about 500 employees.
I am trying to get a new company going and we need to get that going and that’s what we’re going to do, he said.
EcoLogic, which is based in California, also operates several other auto parts businesses, including the parts company that makes the brake pads that go on vehicles like pickup trucks and SUVs.
Other investors in Ecologics include investors from Citigroup, U.S. Bank and other banks.