Big 10 Tires files Chapter 11 bankruptcy
Big 10 Tire Stores Inc., based in Mobile, Ala., and owned by Sun Capital Partners, has filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the district of Delaware.
It is the sixth largest independent tire store chain, according to the Modern Tire Dealer 100 list. It has 101 total outlets in Alabama, Florida and Georgia.
Big 10 said in a release it has "adequate cash to continue paying for the day-to-day goods and services it needs to operate and to serve its customers well" but took this action "improve its capital structure and reduce debt, strengthen its financial and copetitive position, and ultimately to get the business back on a growth track."
The company says that during the reorganization period, it will "operate as usual at its retail locations and will continue to honor all product and service warranties."
Big 10 reports it has secured Debtor-In-Pocession (DIP) financing from an affiliate of Sun Capital Partners. An affiliate of Sun purchased the company in November 2006 and continues to be supportive of Big 10 Tires' reorganization efforts, the release states.
The company reports it has been negatively impacted by the economic downturn. "We strongly believe that volume levels and premium product sales will return as the economy picks up, and as an outgrowth of the successful reorganization of the company," says Don Kennemer, CEO and president.
"At this time, we are intensely focused on continuing to serve our customers well, and working closely with our vendors to build the business. We expect to continue to conduct business throughout the reorganization with minimal disruption."
Big 10 Tires was established in 1954 in Pensacola, Fla. It sells Michelin, Bridgestone, BFGoodrich, Firestone, Uniroyal and other brands of tires and offers automotive service.