Big 10 has filed for Chapter 11.
The company says it “has adequate cash to continue paying for the day-to-day goods and services it needs to operate and to serve its customers well,” adding that the bankruptcy reorganization filing is designed 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.”
Big 10 Tire Stores, Inc. is headquartered in Mobile, Ala. with 104 outlets located throughout Alabama, Georgia and Florida. It expects to “operate as usual” and honor all product and service warranties.
“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 reorganization with minimal disruption,” says CEO Don Kennemer.
“We strongly believe that volume levels and premium product sales will return as the economy picks up, and as an outgrowth of the successful reorganization of the company,” he notes.
The Chapter 11 petition was filed in the U.S. Bankruptcy Court of Delaware.
In connection with the reorganization, Big 10 has secured Debtor-In-Possession (DIP) financing through an affiliate of Sun Capital Partners that had bought the company in November of 2006.
“Proceeds from the DIP financing, together with cash flow generated from day-to-day operations, will be used to fund post-petition operating expenses, including obligations to vendors and employee wages, salaries and benefits,” according to Kennemer, adding that rent concessions will be sought from landlords owning some of its facilities.
In January, Big 10 implemented Sunday hours at select locations.
Since its 1954 founding in Pensacola, Fla. as a franchised dealer for O.K. Rubber Welders, the company “has grown to become one of the largest independent tire dealers in North America” while holding a “leading market position” in eight of its key 11 markets, Kennemer says, noting how the operation “prides itself on its strong, long-standing relationships with customers and vendors.”
The Big 10 name was inaugurated in 1962 as the Dayton Tire and Rubber Co. became its prime product source, with Michelin and Bridgestone as secondary suppliers.
For more information, visit www.big10tires.com.
