Dean Kruse Article

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http://www.oldcarsweekly.com/news/ed...n-kruse-speaks

Story and photo by Phil Skinner

Just a few years ago, Dean Kruse was at the apex of the collector-car auction world. He had been heralded as a genius in the sale of his Indiana-based Kruse International auction company to online auction giant eBay for a total that some reports put in excess of $150 million. He later repurchased the company for less than a dime on the dollar. Through skill and careful positioning, he was able to assemble a top-shelf crew of auctioneers, many of whom were relatives, and a savvy staff. Many of today’s most successful auction operations in the world of vintage cars owe a portion of their success to the pioneering in-roads of Dean Kruse.

But fortunes began to change for Kruse in 2007 with a marked shift in the economy. By his own admission, Kruse was blind-sided by the depth of the comtry’s economic spiral. There had been customers, he said, whom he had trusted to make payment on cars bought at auction — a business practice of Kruse for many years. Kruse explained it wasn’t uncommon for a dealer to buy several cars at one of his auctions and for Kruse to front the dealer money, expecting the cars would be re-sold soon or the dealer would pay the bill within a few days. He said as the economy worsened, outstanding debts mounted and he wasn’t able to pay owners of cars he sold.

Kruse said he hoped the economy would turn, but as stories of non-payment circulated, customer confidence waned. His company was soon besieged by creditors. By the end of 2009, the writing was on the wall and in late June 2010, Kruse negotiated the sale of Kruse Auction Park to RM Auctions, which renamed the property the Auburn Auction Park and launched Auctions America, an entirely new auction company.

At the time of the property sale, Kruse said he was happy RM Auctions purchased the property and would continue with the Labor Day weekend tradition started in 1971. Kruse also acknowledged his outstanding debt with a list 67 people to whom he owed money. At that time, he vowed he would not declare bankruptcy and would work to pay off each person.

Just a few days before the 2011 Auburn Cord Duesenberg Festival, an arrest warrant was issued for Kruse stemming from an allegedly unpaid sale during Kruse International’s 2008 Hershey, Pa., auction. At that time, Kruse spoke to Old Cars Weekly about his efforts to pay off his debts, and about what his future plans might include.

“It hasn’t been easy, but we have made a lot of progress,” Kruse said. “The list of people I owe has shrunk from 67 to 18, and I have tried to pay off those who needed the money most, first. I still promise that I am not going to do what others have done to me — that is to declare bankruptcy to get out of my debts.”

On the day we met with 69-year-old Kruse, he looked healthy and was in good spirits despite experiencing medical issues in the past year.

“Late last year, I had surgery for intestinal cancer,” Kruse revealed, “and just as I was recovering from that, I caught a flu-bug, that manifested itself into a very unusual strand of pneumonia. That had me in the hospital for over six weeks and I am still going through physical therapy three times a week.”

When asked about the recent news of an arrest warrant from Pennsylvania, Kruse said he couldn’t discuss the specifics of the case, but said he expected the matter would be resolved in short order. He had appeared before a local judge and was free on bond pending extradition orders.

“I am really sorry for the trust I have lost with so many people,” Kruse said. “But to those I owe money to, they can rest assured, I will do everything in my power to get them paid.”

Kruse has sold off a number of his assets, including properties, many of his collector cars and other artifacts, and has also mortgaged his remaining properties to raise funds. He still hopes that some of the people who owe him money will pay him, which he would then use to pay his debts.

Despite a suspended auction license, Kruse says he isn’t ready to get out of the hobby just yet.

“Well, I really don’t want to retire completely,” he said. “We are still very active with our museums here in Auburn. I think I would really like to write a book about this ordeal, and I would really like to keep active in the hobby. I made a lot of good friends over the years and many of them have stayed by my side and supported my efforts.”

Our visit was short as Kruse had to take the seat in a Duesenberg as an honored figure in the Auburn-Cord-Duesenberg Festival’s parade. Many in Auburn still consider Kruse to be an icon in the community, and even as we toured the renamed Auburn Auction Park during Auction America’s 2011 fall sale, several dealers shared fond recollections of their days with the “Dean of Auctioneering.”

Perhaps one day Kruse will again be at the apex of the car hobby, but it will be a challenging road back.

[JpMotorsports]

When I was younger me and my dad would go there in the spring and he would buy a car and do minor restorations and drive and show the heck out of the cars for the summer and take it back in the fall and sell it and we would buy another to restore during the winter.

When I was 18 I took my 86 Cutlass to the Auburn Fall Auction in 2006. I originally had it in their huge car coral ( if you have ever been yod know how big it was) and got a open spot in the auction day Saturday around 4:30 (a really good time). The car didnt meet the reserve and I wasnt willing to drop it. After the car rolled off the block a man ( later to come find out he was a dealer) wanted to buy the car and paid my reserve asking price. We signed the seller papers and went to the auction office later that night to finalize everything and get my money. After an hour wait in the office we were seen (it was always extremely busy in there getting cars registered and paid) We were told that they yet to receive the funds from the buyer and was told he is a dealer with a long list of cars selling sold and recently bought and that he was scheduled to pay for the cars he bought by end of the day today and we would be able to get our money Sunday morning. So having dealt with Kruse for many years we said ok. Sunday morning came we went to get my money and was told he didnt come in last night and would pay this morning and to come back later so we did and to speed up the story everytime we went in they said to come back and remember every time we came to check it was at least 45 min wait.

So skip a head to 8pm Sunday night we want to leave and head home to Michigan (mind you we drive every year to the auction)We sit down with a lady who has seen us already 3 time that day and tells us the dealer has yet to pay for the car. We ask to speak with Dean Kruse and he comes in and insures us he is one of his good dealers that has bought and sold hundreds of cars at his auctions. He personally guarantees we will have my money with in a week. Me and my dad are pissed beyond belief we ask for a signed letter from kruse promising this would happen and he declined we then ask to see the dealer and get him to pay of sign a letter tonight. We find out he has left after they paged him for 20 min. So we drive home 6 hours and wait for over 3 weeks to finally get paid. The check that comes is a Kruse International check a free pass to sell a car at any Kruse auction the following year and a signed letter from Dean Kruse apologizing for the inconvenience. I can tell you I am still a little pissed about the whole situation but can some what appreciate the attempt Dean Kruse trying to be a stand up guy.

I for one can sympathize for those who he has wronged granted some have waited alot long and some are still waiting for their funds and know he wont be apart of any future auction houses due to the rep he has now I dont think any other company could afford and would want to have him and his bad rep. They did have some of the very best and funniest auctioneers I have ever heard. It was truely a show and kept you entertained even of you werent bidding.

[Bill Pritchard]

IMO : Dean Kruse <span style="font-style: italic"><span style="font-weight: bold"><span style="text-decoration: underline">might</span></span></span> have been a 'genius' if he had just taken the eBay money and run off to retirement....but noooooo, he let his ego get the best of him and tried to salvage the business after eBay had run it into the ground. It had already begun to deteriorate even before the sale to eBay, so they can't be blamed entirely. Then, factor in a deteriorating economy and his apparent belief in the 'good ol boy network' way of doing business with some people, and it was the perfect recipe for disaster. Kudos to him if he manages to pay off all those who are owed money, but his days as a respected figure in the hobby/business are long over.

[1969z280]

Kruse took the money and didn't pay people. Then when he got taken to task he blamed everyone else. Bull$#!t! He had the money but wouldn't tap his own trust fund. If you knew how much money that he screwed individuals and local banks out of... you wouldn't be so quick to give him an inch of credit. He is a disgrace to NE Indiana.

[olredalert]

-----Agree with you completely, Ed. This is not new stuff with Kruse. Years, and I mean YEARS, ago (late 70s) he was doing the same stuff. Classic Motors (My employer at the time) sponsored a Kruse auction one time and Kruse failed to pay back several people. One was our shop foreman. Dean offered him free spots at other Kruse auctions as a way of placating him. This was a guy who might have one car every other year. Kruses excuse for the non-payback was that luggage full of checks from buyers got lost when it was &quot;checked on a plane flight&quot;. Come on, I mean,,,really!!!!
-----Also, I would very much doubt that he has anywhere near as many &quot;friends&quot; in Indiana as this writer portrays him to have. That # could probably less than the number of fingers you have.......Bill S

[427.060]

If he didn't pay the car owners because the buyers didn't pay him, why didn't he take the buyers to court? Most of the story sounds like BS to me.
James