Pep Boys unloads 20-plus properties
Pep Boys - Manny, Moe & Jack has completed the sale of 22 properties for $77.5 million in a move that "improved our liquidity," says Pep Boys CFO Ray Arthur.
As part of the deal, Pep Boys has entered into agreements to lease such properties back to be operated as Pep Boys stores for a lease term of 15 years.
"Proceeds from the transaction, together with cash on hand, were used to purchase -- for $116.3 million -- 27 store properties and two distribution centers that had been leased by the company under a master operating lease," say Pep Boys officials.
In total, Pep Boys has more than 550 stores.