Continental “Expects To Sell National Tyre Service This Year”

Manfred Wennemer, management board chairman of Continental AG, is reported as saying that the company expects to sell off its 210-outlet UK equity chain National Tyre Service by the end of this year, having completed the restructuring of the operation. Enquiries in the UK were referred to a spokesman in Hanover, who confirmed that the sale was expected to go ahead, but declined to reveal any further details, nor with whom Continental was currently negotiating. It seems fair to assume that, if a sale is expected within the next few weeks, then negotiations are indeed going ahead and, presumably, they must be at an advanced stage.

One rumour – and it is only a rumour – says that a London-based venture capital company is involved in the talks. News of the impending sale only became public because Continental had to enter a figure referring to the sale into its fourth quarter accounts, and this was picked up by analysts. National Tyre Service Ltd.

was bought by BTR from Dunlop in March 1985 and subsequently offered for sale in the first half of 1989. Michelin offered 140 million Pounds for the chain – an action which was the subject of an investigation and report by the Monopolies and Mergers Committee. In the end, the report concluded that the sale could go ahead, but in the meantime Michelin had sold the chain to Continental for around the same price that the French company had paid.

It is no secret that National has been a drain on the parent company, losing large amounts of money, and there has been much speculation over the years that the chain would be sold, or closed down. Matters came to a head in April this year, when Continental issued a statement denying reports that it was selling off National. The company has invested “a considerable amount” in the chain over the past 18 months, said the statement, and promised an imminent announcement regarding the commercial side of the business.

That turned out to be the formation of ContiNetwork; a partnership with independent truck tyre service providers, which meant the closing down of the commercial tyre side of National Tyre Service. 61 branches were closed, four were absorbed into ContiNetwork, 3 were the subject of management buy-outs, 7 transferred to National’s retail division and 9 were sold to third parties. In total, 330 staff were made redundant.

This left a total of 210 centres in National’s retail passenger division. In the middle of last year, T&A spoke to National’s MD Adrian Dunleavy, who revealed that he had implemented a five-year plan, aimed at returning National to profitability. Dunleavy left the company a few months ago, and was replaced by Alan Revie, who is also MD of Conti-owned wholesaler Viking International.