 Rusty Jones Inc. filed for bankruptcy protection in 1988 claiming that automakers' extension of factory warranties against rust had caused business to deteriorate.Between 1985 and 1988, the company's distribution network declined from 3,000 new car dealerships to 1,800.However, there is some disagreement regarding why the company went out of business, as former director of marketing Bruce Freud claimed in an interview that the company was "unbelievably profitable", but that its insurance carrier (who serviced the rust warranties on Rusty Jones treated vehicles) filed for bankruptcy, creating problems for the company.