In order to keep his customers in the loop during American Tire Distributors Inc.’s reorganization, CEO and President Stuart Schuette emailed out a quick update on the company’s recent business developments. They include clearing up some confusion about how some of its suppliers have reacted to the company’s Chapter 11 Reorganization bankruptcy filing.
Here’s what he had to say to his ATD customers.
“We are making significant progress with our recapitalization process that will strengthen our financial position as we continue our successful, game-changing transformation. We have a clear roadmap for the next steps in this process and the support of our key financial stakeholders has us on track to emerge by the end of the year as a stronger company with less debt that is even better positioned to serve our customers.
“We recognize that there was some confusion because a few of our vendors made court filings that were intended to preserve their legal rights. The fact is, we have been working with our vendors as normal and have entered into trade agreements with all of our key vendors to continue supplying us. We also have obtained final court approval to access more than $610 million that can be used to pay certain key and foreign vendors during the recapitalization process.
“We do not anticipate any issues with availability and product supply moving forward. We are taking care of our customers and supporting them across all channels, and the consumers they serve.
“With our strong vendor relationships, we are continuing to provide you with more selection, wider and more timely availability and easy access to a complete package of tires, wheels and shop supplies. We are committed to your success and delivering the value, unparalleled selection and service you have come to expect from our company.
“Looking ahead, we will continue to keep you informed as we move forward. “
Two of ATD’s vendors, Toyo Tire U.S.A. Corp. and Nitto Tire U.S.A. Inc. , issued a joint statement to Modern Tire Dealer when asked how the Chapter 11 bankruptcy filing was affecting them.
“We have full confidence in the ATD management team and their plan. We have supplied and will continue to supply our products to ATD on the strength of their commitment to that plan, to take care of their customers and ours.”