Manchester Inc. Headquartered in Dallas, Texas, is in the Buy-Here/Pay-Here auto business. Buy-Here/Pay-Here dealerships sell and finance used cars to individuals with limited credit histories or past credit problems, generally financing sales contacts ranging from 24-48 months.

Manchester Inc. recently announced that they have filed for protection under Chapter 11 of the Federal Bankruptcy Code. Rick D. Gaines, Manchester's newly appointed President and Chief Executive Officer stated, "Manchester filed for bankruptcy protection due to an ongoing dispute with its senior secured creditor and intends to use this opportunity to resolve ongoing disputes that have adversely affected the company and its operations. Manchester is requesting and expects to receive authority from the Bankruptcy Court that will allow it to continue to operate in the ordinary course of business during its chapter 11 cases, with very limited exception.

Specifically Manchester expects the following:
(1) Manchester's business divisions intend to continue to operate in the ordinary course
(2) Manchester intends to pay wages and benefits in full and on time
(3) Manchester does not intend to have any layoffs related to the bankruptcy cases
(4) Manchester expects that its current senior management team and all personnel will remain in place
(5) Manchester intends to continue to operate on a 'business as usual' basis
(6) Manchester expects the bankruptcy to result in a stabilized and financially-stronger Manchester, one that is profitable and poised for future growth

Relevent Acquisitions:
On October 4, 2006, Manchester acquired Nice Cars, Inc. and Nice Cars Capital Acceptance Corporation. Nice Cars, Inc., headquartered in Ft. Olgethorpe, Georgia, operates six automotive sales lots that focus exclusively on the Buy-Here/Pay-Here segment of the used car market.