From the Archives: Impending Doom: Sit Down with Dean Kruse, Fall 2009

December 2009 issue of Collector Car Market Review

As we get ready to go to press, we have just returned from Auburn, IN, home of Kruse International. To say things were "touch and go" for Kruse the week before Labor Day weekend would be an understatement. In a last minute court-hearing, parameters were established for how current and past consignors (who were owed money) and creditors would be paid.  Let's just say that if a deal hadn't been reached, the weekend would've been a disaster.

Right out of the gate, Dean Kruse acknowledged that his company owed a lot of people money.  He also pointed out that there were lots of people who owed him money, but he didn't make that an excuse. "The economy really hit a number of my clients," Dean Kruse said.  "Some of these people have been loyal and good customers for 20 to 25 years and more.  We all got hit by the economy, but I am a survivor, and we have faced other hurdles in our history.  We will get everyone paid off and the Fall Auburn sale will see to that."

The last minute agreement called for Kruse to place all funds received from this event into a special account.  Sellers were to be paid as soon as possible; many consignors who had sold their cars left with checks in hand. Auction expenses were to be paid next, followed by the mortgage holder for the Auction Park plus other creditors, mainly past consignors. To help bolster the fund to settle these debts, Dean Kruse offered a number of his own vehicles on the block.

There was noticable downsizing in many areas this year, except staff.  First off, the number of actual cars placed on the auction block was down by a sizeable amount, possibly 900 vehicles total. There were still five days of full-out auction action, plus one day of collectibles and another of just reruns for a total of seven. Many felt that the reason for the drop was the rumors about not getting paid, and while this did have an effect, the economy undoubtably was a factor, too.

In addition to the auction, Kruse Auction Park also hosts a swap meet and car corral, which is a big draw for attendees.  This year, both of these events were smaller, but not due to fear of not getting paid as all transactions here are private deals between the sellers and buyers. We did notice several consignors in auctions past displaying cars for sale in the corral rather than on the auction block.

At the close of the sale on Labor Day things were looking a bit cheerier.  Dean wore his trademark smile and his wife Kristen was by his side, as she has been throughout this ordeal.  Most importantly, checks were being issued to creditors and consignors alike.

Kruse acknowledges that there needs to be some adjustments made to the way he has done business in the past, and promises that positive improvements are in the works. We have heard this before, of course, but this  time the Rubicon was crossed, and the Empire sits at the edge of the abyss.

We were still tallying results at press time, but suffice to say that numbers were a far cry from Auburn’s glory days, when it was the most anticipated collector car event of the year.

 -- Phil Skinner 

Update: Kruse International's troubles continued into 2010, with the end coming abruptly.  Dean lost his license for life and RM purchased Kruse Auction Park in Auburn, IN, where they held a successful sale this past September, 2010.