Big 10 Tire Stores, Inc. is now known as New Big 10 Tire Stores, Inc. following the operation’s sale to an affiliate of Sun Capital Partners.
Big 10 had filed for Chapter 11 bankruptcy in April.
“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,” says Don Kennemer, president and CEO.
Terms of the transaction were not disclosed.
“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,” according to Kennemer.
“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,” Kennemer explains. “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,” he notes.
New Big 10 served as “stalking horse bidder” for Big 10’s assets under Section 363 of the U.S. Bankruptcy Code, he says. A Delaware bankruptcy court judge approved the sale in late June.
“New Big 10 Tires has completed an important step on its return to financial stability and future growth,” reports Matthew N. Garff, a Sun Capital principal. “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.”
Sun Capital is an investment firm “focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience,” according to Garff.
Big 10 is headquartered in Mobile, Ala. with 104 outlets located throughout Alabama, Georgia and Florida.
In January the chain 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 and www.SunCapPart.com.
