Restructuring

Update: 12/19/11 “COURT APPROVES PLAN OF REORGANIZATION FOR DANNY’S FAMILY CAR WASH” See below for link.

Dear Friends,

Danny’s Family has been serving the Valley for over 25 years and our goal is to provide every patron with the best customer service while delivering an exceptional product. We have locations all throughout the Valley serving Scottsdale, Phoenix, Peoria, Avondale, Tempe, Gilbert and Mesa. We have been an integral part of the community from the beginning, helping hundreds of worthy non-profit agencies in the Valley – a number that continues to grow every year. We truly believe Danny’s and all other locally owned businesses play a vital role in these cities recovering from this economy. Our commitment continues to be to our loyal customers, valued employees and the communities we operate in.

I wish to sincerely thank you for all your continued support. As you know, in 2010 Danny’s voluntarily filed for reorganization under Chapter 11. We made this bold move to protect the business and most importantly the many hundreds of employees who make Danny’s Family Companies the organization it is today. Like many Arizona businesses, we were hit hard by the global credit crisis and the weak Arizona economy, and needed the chance to reorganize and streamline our operations.  We have done so; since our filing Danny’s has sold or closed two underperforming locations, has made significant changes in its operations, and has worked diligently and cooperatively with lenders, landlords and suppliers to develop an acceptable plan for reorganization of the company, all toward the goal of protecting jobs and ensuring the long-term success of the Company, its employees and its creditors.

As part of that restructuring, it became clear that I needed to file for Chapter 11 bankruptcy protection personally, in order to protect the Company from any disruption caused by personal claims against me.  These claims arise largely from my involvement in real estate ventures unrelated to the Company, which, like so many others, fell through due to the crumbling real estate and financial markets.

I said from beginning that my first concern has been for my employees and to the community where I have built this business over the years, and that I would do anything I could to save those jobs. So while this was a difficult decision for me personally, I am convinced that it was necessary to help preserve the jobs of Danny’s employees and the future of the Company. This has been a challenging couple of years, but Danny’s has weathered the difficult economic times due to the loyalty of our customers, the hard work of our employees, and the cooperation of the Company’s lenders, landlords, and suppliers. I simply could not sit back and allow these outside parties to jeopardize all that we have worked so hard to achieve throughout this process.

This filing will help the Company stay on track as it prepares to emerge from the reorganization process. I have always said that we will come through this stronger and better as a Company, and this will help ensure that Danny’s will remain one of Arizona’s top local businesses and employers for many years to come.

Thank You for your continued patronage

Danny Hendon

Most recent press release (12-19-11) “COURT APPROVES PLAN OF REORGANIZATION FOR DANNY’S FAMILY CAR WASH”