Locks were put on the doors of a high-profile St. John's car dealership Friday after it was pushed into receivership.

Tom Woodford Ltd., whose flagship lot has operated for more than three decades on Kenmount Road, has closed, throwing more than 60 sales and service staff out of work.

Employees at the lot were telling customers Friday morning that the firm — which holds the key Chrysler dealership in St. John's — was operating as usual, even amid reports that the company was folding.

By Friday afternoon, the company's doors were locked and a security guard was fielding questons.

St. John's-based firm Janes & Noseworthy is the court-appointed receiver for the company.

Customers had rushed to the dealership throughout Friday to reclaim cars that had been in for service after Mercedes-Benz recalled its vehicles Thursday from the Woodford lot on Topsail Road.

No one from the Woodford family or from Janes & Noseworthy was available Friday to comment.

Known through commercials

Tom Woodford — who became a well-known figure across Newfoundland and Labrador for fronting his own commercials in the earlier years of his business — has been in ill health for some time.

"This is not a happy thing to be going on. It's just devastating," said Charlie Elton, who owns Royal Garage, which also holds a Chrysler dealership.

Elton said Tom Woodford Ltd.'s problems are not related to the woes that Chrysler and other major U.S. car manufacturers are trying to overcome.

"From what I've heard and seen so far, it seems to have been a taxation issue," he told CBC News.

Elton added that Chrysler dealers in Newfoundland and Labrador have had strong sales, borne out by statistics showing the province is bucking a national trend of declining vehicle sales.

A court date involving the Canada Revenue Agency and Tom Woodford Ltd. is set for February. The federal agency said the company owes millions of dollars in back taxes.

Last year, Canada Revenue Agency officials entered the Woodford premises with a police escort as part of an ongoing dispute about taxes.

Chrysler Canada would not comment on the status of the dealership but said consumer warranties will be honoured.

"Chrysler Canada is fully committed to standing by our customers and the Chrysler, Jeep or Dodge products that our customers own or purchase," Mary Gauthier, a corporate communications official with Chrysler, told CBC News in a statement.

"Any existing warranty coverage on their Chrysler, Jeep or Dodge vehicle remains intact and unaffected by their selection of dealership."

Elton said Royal Garage will honour any service agreements with Woodford customers.

"We will be able to handle any warrant or service requirements in here," he said.