Active Green & Ross reports smooth Sears Canada transition

May 27, 2004

Active Green & Ross has taken possession of three Sears Canada tire and auto centers it obtained when the mass merchandiser decided to exit the auto service business two months ago.

The outlets had been closed for a couple of years, according to Active Green & Ross President Ralph Chiodo.

Active Green & Ross is adding inventory and equipment to the outlets and is hiring personnel to staff them.

"We'll have them open by the end of May."

Active Green & Ross plans to take full control of eight more former Sears loccations by the end of June.

All 11 outlets eventually will be offered as franchise locations, says Chiodo, who expects the stores to boost Active Green & Ross' total sales volume by 25%.

"Projected profits will be proportional to that."

Sears Canada has licensed 25 more outlets to Kal Tire and President Tire.

Significant changes in the automotive aftermarket that the three companies are better-equipped to handle made the decision necessary, said Sears Canada President Brent Hollister in late March.