US Retailer ‘Big 10 Tires’ Files for Chapter 11 Bankruptcy

Southeast US based independent tyre retailer Big 10 Tire Stores has filed for ‘Chapter 11’ bankruptcy protection. In a statement released on April 2, the company said that it has “filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the district of Delaware.”

The company reports it has “adequate cash” to continue paying for the day-to-day goods and services it needs to operate and to serve its customers following the securing of financing from an affiliate of Sun Capital Partners. The petition was filed, Big 10 adds, to improve its capital structure and reduce debt, strengthen its financial and competitive position, and ultimately to get the business back on a growth track. The company says it will operate as usual at its retail locations during the reorganisation period, and will continue to honour all product and service warranties.

The retailer reports being negatively impacted by the economic downturn. “We strongly believe that volume levels and premium product sales will return as the economy picks up, and as an outgrowth of the successful reorganisation of the company,” said CEO Don Kennemer. “At this time, we are intensely focused on continuing to serve our customers well, and working closely with our vendors to build the business. We expect to continue to conduct business throughout the reorganisation with minimal disruption.”

The Alabama based company was purchased by an affiliate of Sun Capital Partners in November 2006, and Big 10 reports that this affiliate “continues to be supportive” of Big 10 Tires’ reorganisation efforts.