Federal prosecutors are investigating Tricolor, a used car dealership and subprime auto lender, following its recent bankruptcy filing. The company announced plans to liquidate its assets in bankruptcy court earlier this week, prompting scrutiny from authorities.
Details regarding the scope of the investigation have not been publicly disclosed, but the probe suggests potential concerns over the company’s lending practices or financial operations. Tricolor, which primarily serves consumers seeking affordable used vehicles, has been a prominent player in the subprime auto financing sector.
The bankruptcy filing marks a significant development for the company, which has navigated challenges related to its business model and the broader autos market. Authorities’ investigations could impact the company’s creditors, customers, and the auto lending industry at large. More information is expected as the inquiry progresses.