MOBILE, Ala. — Big 10 Tire Stores Inc., one of the largest independent tire dealers in the Southeastern U.S., has completed the sale of its operations to New Big 10 Tire Stores Inc., an affiliate of Sun Capital Partners.
The parent company of Big 10 filed for voluntary protection under Chapter 11 of the Bankruptcy Code in April in the U.S. Bankruptcy Court for the District of Delaware. To facilitate a smooth restructuring process and allow for a sale of the ongoing business, an affiliate of Sun Capital agreed to provide a debtor-in-possession loan facility (DIP) to Big 10 upon the bankruptcy filing. The DIP financing provided operational and financial stability as Big 10 proceeded to improve its capital structure and strengthen its competitive position to return the business to its long-term growth track.
New Big 10 served as the stalking horse bidder for Big 10’s assets under Section 363 of the U.S. Bankruptcy Code. The Bankruptcy Court approved the sale on June 26.
New Big 10 is a top ten independent tire dealer in North America, with a market leading position in eight of 11 of its key markets throughout Alabama, Florida and Georgia. In addition to tire sales, New Big 10 provides services such as tire rotations, oil changes, belts, hoses, parts and warranty sales.
"Through the bankruptcy process and with the support of New Big 10, we were able to successfully reorganize the business while maintaining normal operations with our vendors and employees and providing continuous service to our loyal customers," said Don Kennemer, president and chief executive officer, New Big 10 Tires. “We have emerged with a stronger balance sheet and a leaner, more focused organization that will strengthen our value proposition and reputation for superlative service.”
Matthew Garff, principal, Sun Capital Partners, added, “New Big 10 Tires has completed an important step on its return to financial stability and future growth. The restructuring has allowed the company to reduce its costs and improve its capital structure. We look forward to working with Don Kennemer and the management team to position New Big 10 for future growth.”
