Unimax Deal Off, Tirecraft Back into Receivership

Tirecraft Group was placed in back into receivership after Pneus Unimax pulled its offer to buy the distributor and franchisor, which was supposed to close on May 30. News reports indicate that two investment companies – Omni Group of Companies and Stern Group – are in the process of bidding to take over the Sherwood Park, Alberta-based Tirecraft. Their bids were due on June 15, according to the Edmonton Court of Queen’s Bench.

CIT Business Credit Canada Inc., Tirecraft’s largest creditor, put the firm back into receivership on June 10 after efforts to sell the company to any of the original bidders failed. Ernst and Young, the court appointed receiver, plans to operate the business day-to-day while it is in receivership, though miscommunication apparently caused some store managers to close their doors briefly last week. Last week, Ernst and Young fired Tirecraft president William Steeple.

Tirecraft operates company-owned retail stores and has some 300 franchised retail locations, as well as its Remington Tire distribution business and a commercial truck tire retreading operation. Tirecraft was sold in late 2005, then one of North America’s largest tyre retailers, to a group private investors. Heavy acquisition spending and a downturn in the economy put Tirecraft into heavy debt and a cash crunch.

Pneus Unimax pulled out of its deal, said reports, after failing to receive a required credit letter from another creditor. (Tire Review/Akron)