Key Takeaways
- Bayside Mitsubishi in LaPorte closed abruptly due to cash flow problems, leaving customers without vehicle registrations and unpaid trade-ins.
- The dealership’s owner, Alex Sinno, faces multiple lawsuits, including one for $4.4 million from Nissan Motor Acceptance Group.
- Mismanagement of funds and insufficient insurance coverage after Hurricane Beryl contributed to the dealership’s financial collapse.
- Sinno is reportedly trying to sell the property to address the dealership’s legal obligations and customer issues.
LAPORTE, Texas – A Houston-area car dealership suddenly closed its doors over the weekend, but the trouble started months ago.
Bayside Mitsubishi in La Porte is now gated up, most of the cars are gone and the lights are off.
A sudden closure
The business officially closing up on Saturday after running into “cash flow problems,” according to the general manager.
KPRC 2’s Gage Goulding visited the dealership off Highway 146 after receiving several KPRC 2 Help Desk requests for help. Customers of the dealership claim they never received their vehicle registration, or their license plates - or even worse - the dealership never paid off the loan on their trade-in.
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“We did a trade-in. They have not paid off our trade-in vehicle,” said Lucia Sufentes.
“They frauded me. They defrauded me,” added Autyana Hodges.
Both are victims of the car dealership that simply just ran out of money. They both are also stuck with a second car loan on a vehicle they don’t even have anymore.
“I’m trying to get a house with my husband and this is going to mess with my credit in the long term,” Hodges told KPRC 2′s Gage Goulding. “It’s going to tank everything. It’s going to turn into a repo that’s going to destroy my credit and it’s going to mess up everything it is that me and my husband are trying to build.”
General manager speaks out
When KPRC 2 visited the car dealership on Thursday morning, our crew met the general manager, Kenny O’Kane.
He shared the news that the dealership closed down, the bills haven’t been paid and customers have every right to be angry.
“I understand totally why they would be angry. Absolutely. I would be,” O’Kane said. “I would be pissed off too. Definitely would.”
On top of that, O’Kane says he hasn’t received a paycheck himself since September.
Bayside Mitsibushi is owned by a company named A&F Holdings, LLC - who’s principal owner is Alex Sinno.
Sinno, who couldn’t be reached for comment, isn’t shy about his ownership of Bayside Mitsubishi, often posting on his social media.
His now-defunct dealership was also featured by Mitsubishi in their January 2022 “Dealer Spotlight.”
“I found LaPorte Mitsubishi, and I fell in love with the quality and value of Mitsubishi vehicles,” Sinno wrote. “The dealership needed a lot of work, but after bringing in a new finance team, and changing the name, we are finding tremendous success. The new vehicles are beautiful, and they’re flying off our lots.”
MMNA Dealer Spotlight - Bayside Mitsubishi by Gage Goulding on Scribd
O’Kane confirms that Sinno used to be a partial owner of another car dealership, Veteran Chevrolet near Corpus Christi. However, he’s currently being sued by the other owners, O’Kane told KPRC 2.
“Well, now the store’s still there,” O’Kane said. “His partners down there are doing what they can to buy him out.”
He also owns Texas Auto Save in San Antonio, Texas.
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Exactly how did the company get into this financial mess?
There’s one simple answer: money mismanagement.
O’Kane blaming the previous General Manager here for frivolous spending and not keeping a watchful eye on the bank account, which is now under $1,000.
But there’s one final nail in the coffin. Something that impacted many Houstonians: Hurricane Beryl.
“That was really the icing on the cake to throw it in at the turmoil that it was in,” O’Kane said. “Then the other guy that was here totally mismanaged the funds. It’s just too far gone.”
Owner’s legal and financial troubles
This isn’t the only lawsuit Sinno and his company, A&F Holdings, LLC is facing.
The company that finances cars sold at Bayside Mitsubishi is also suing the dealership for more than $4.4 million. The financial institution, Nissan Motor Acceptance Group, filed the lawsuit earlier this year. (Mitsubishi teamed up with Nissan for financing)
The money problems started for Sinno and his company thanks to mismanagement of funds, according to O’Kane. However, the final nail in the coffin was Hurricane Beryl.
According to court records, the Sinno’s company has filed a lawsuit against their insurance brokerage, claiming they “failed to secure sufficient or adequate coverage for this property.”
Gage Goulding: “I know the dealership suer the company is suing their insurance broker over some hurricane damage, money that they never got. Living underinsured?
Kenny O’Kane: “That’s correct. Those [insurance] guys are here right now. Some inspectors for the hurricane money, too. And like I said, he’s got equity in the property. So he’s got ways to come up with it. It’s just, you know, like I tell everybody, I wish it would have happened yesterday. You know?”
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Customers left in limbo
So, what about all of those people who bought cars and are left without registration, license plates, and paying two car loans because the dealership didn’t pay off their trade-in?
O’Kane vows that Sinno will make things right.
“That that’s a legal obligation that the owner needs to take care of and he’s going to take care of it,” O’Kane said. “He’s in the process of trying to sell the property and he will take care of that. He’s got to take care of that. I think it will happen otherwise I probably wouldn’t be here. And I believe in the owner that he wants to take care of it, wants to do the right thing.”
Meanwhile, customers want the Texas Department of Motor Vehicles - which oversees and regulates car dealerships - to step in and take action.
“It’s not fair that you are doing this. You’re robbing everyone. You should be in jail. You should be held accountable,” Sufentes said. “Somebody other than the owner should definitely step in and. And make him accountable for everything going on.
Mitsubishi responds
Mitsubishi Motors North America (MMNA) responded to the situation, clarifying the franchise agreement status with Bayside Mitsubishi.
The franchise agreement was terminated in October 2024, meaning Bayside is no longer an authorized Mitsubishi dealer.
MMNA emphasized that they are not involved in the loans entered into via Bayside Mitsubishi or any loans involving trade-in vehicles
Read the full statement below:
All Mitsubishi Motors car dealerships are independently owned and operated under a franchise agreement. In October 2024, Mitsubishi Motors North America, Inc. (MMNA) terminated Bayside’s franchise agreement and, as a result, Bayside is no longer an authorized Mitsubishi dealer.
MMNA values the decision a car shopper makes when they choose to purchase a Mitsubishi vehicle. However, MMNA is not involved in the loans that customers entered into via Bayside Mitsubishi, or any loans that customers may have had on vehicles that they used as a trade-in.
MMNA’s understanding is that concerned customers may contact the Texas Department of Motor Vehicles, Enforcement Section (“TxDMV) in Austin, regarding any complaints they might have with Bayside Mitsubishi at https://www.txdmv.gov/complaints. The TxDMV also has information on how customers may seek relief from certain registration fees when their dealer goes out of business or files bankruptcy, at https://www.txdmv.gov/motorists/consumer-protection/dealer-closures.”
