Big 10 Tire has officially emerged from Chapter 11 bankruptcy with the completion of its sale to New Big 10 Tire Stores, Inc.
The 104-store chain, with locations throughout Alabama, Georgia and Florida, will retain its Big 10 name, signage and other aspects of its branding.
New Big 10, an affiliate of investment firm Sun Capital Partners, is an entity set up to facilitate the operation’s purchase for an undisclosed sum, according to spokeswoman Hadley Wilmerding at Stanton Public Relations & Marketing.
New Big 10 served as “stalking horse bidder” for Big 10’s assets under Section 363 of the U.S. Bankruptcy Code, reports Don Kennemer, Big 10’s president and CEO.
According to the online dictionary Investopedia, a stalking horse is an initial bid from an interested buyer chosen by a bankrupt company: “This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company’s assets. In essence, the stalking horse sets the bar so that other bidders can’t low-ball the purchase price.”
The transaction allowed Big 10 to successfully reorganize “while maintaining normal operations with our vendors and employees and providing continuous service to our loyal customers,” Kennemer says.
Select locations are now open Sundays from 10 a.m. to 4 p.m. except for participating stores in the Orlando area that will open an hour earlier at 9.
The company has issued a guarantee that it offers “the lowest price in town,” inviting potential patrons to call the nearest Big 10 outlet for comparison shopping.
Headquartered in Mobile, Ala., the operation was established in 1954 in Pensacola, Fla. as a franchised dealer for O.K. Rubber Welders. Since then it “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, coinciding with the Dayton Tire and Rubber Co. becoming its prime product source with Michelin and Bridgestone as secondary suppliers.
It had filed for bankruptcy in April. The conclusion of those proceedings means that the company “has completed an important step on its return to financial stability and future growth,” says Matthew N. Garff, a Sun Capital principal.
For more information, visit www.big10tires.com and www.SunCapPart.com.
