Charlotte-based Sonic Automotive said Monday that it wont be able to file its required annual financial statement on time, as problems with its accounting at dealerships mean the company needs more time to sort its finances out.
The companys stock closed down 75 cents, or 3 percent, at $23.60 a share following the disclosure.
The company has determined that a material weakness existed in the effectiveness of controls over its dealership level accounting processes, Sonic wrote in its filing.
Sonic said it expects to be able to file its annual report within a 15-day extension window. The company, headed by Bruton Smith, operates more than 100 car dealerships.