The trustee for bankrupt grocery chain owner Deon Dove, who faces charges of tax evasion, theft by deception and forgery, plans to auction off property from six of the chain's stores.
Trustee R. Kimball Mosier announced the auction will take place at 10 a.m. Friday at his offices in Salt Lake City.Proceeds from the auction will be used to satisfy debts owing to Trans-America Commercial Finance Corp., a priority creditor in the Chapter 7 bankruptcy that amounts to more than $20 million in debts.
The Utah State Tax Commission says Dove owes the state more than $5 million in unpaid taxes over the past five years, but the state is not a priority creditor.
State officials have said they doubt the state, and the 10 cities where Dove's Happy Service Markets were located, will see any of the owed sales tax money because they have to wait in line behind the priority creditors for payment upon liquidation of the grocery chain assets.
The auction Friday include property from Dove's Happy Service Markets in Delta, Spanish Fork, Richfield, Springville, Mount Pleasant and Kanab as well as the company headquarters in Springville.
"The personal property and fixtures will be sold at auction to the highest bidder and terms of the sale are all cash," Mosier said.