Winston Tire Co., based in Torrance, Calif., has filed a Voluntary Petition in the United States Bankruptcy Court's Central District of California.
According to the petition, Winston is filing under Chapter 11, which allows corporations to reorganize without having to liquidate assets. According to the United States Bankruptcy Court for the Central District of California Web site, in filing a Chapter 11, "the debtor presents a plan to creditors which, if accepted by the creditors and approved by the Court, will allow the debtor to reorganize financial or business affairs and again become a financially productive business."
The petition says estimated debts of the company are more than $100 million, more than twice its estimated assets.
Winston Tire is owned by Performance Management of Lafayette, La., which purchased the Winston Tire chain from Heafner Tire Group last year. Heafner owns the rights to the Winston brand, but Winston Tire buys the tires directly from their manufacturer, Goodyear Tire & Rubber Co., through a licensing agreement with Heafner.
According to Heafner President Dick Johnson, other than the licensing agreement, Heafner has no supply or real estate ties to Winston, and is, therefore, not affected by Winston's Chapter 11 filing.
