In a letter to customers, Michael Feder, interim CEO of American Tire Distributors Inc. (ATD), says the company remains “open for business.”
Here’s the full text of the letter, which was published when ATD announced it had filed for bankruptcy:
“ATD has stood in this industry for nearly 90 years and continuously evolved over that time to meet the dynamic shifts and challenges facing the auto aftermarket. Since our founding, providing our customers with an integrated experience comprising service offerings and product availability has been the driver of everything we do.
“We are now taking steps to position ATD for our next phase as a stronger distribution partner to you. Specifically, we have entered into an agreement that contemplates a sale of the Company to certain of our lenders that are well-capitalized investors who have supported and continue to support the business. The ownership transition, if implemented, would significantly reduce our debt and provide us with financial resources to support our business on a go-forward basis.
“To implement the agreement and conduct a value-maximizing sale process, we’ve commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code, during which we will continue to support our customers across our nationwide distribution network. As part of this process, the contemplated transaction with the lenders will be subject to higher or otherwise better offers from third parties, court approval, and other closing conditions.
“Since being named interim CEO in August, I have seen how impactful our business is to the manufacturer partners, customers, associates, and communities we support and serve. Though our business has been impacted by several market, operational, and financial challenges, through this court-supervised sale process, we will be better able to build on our proud history by returning to our roots and honing our core value proposition as a wholesale distributor. As far as what the actions we are taking mean for our business and for you, I want to emphasize that:
• ATD is open for business. Operations across our nationwide distribution network are continuing.
• Our commitment to serving our customers with excellence is unwavering. We have strong relationships with our manufacturer partners and will continue to provide you with tires, wheels, related tools and accessories to support your business.
• We are confident that we will emerge from this process as a stronger partner to you.
We are committed to transparent communication and will keep you informed as we have updates to share. In the meantime, additional resources can be found on ATD’s dedicated restructuring website at www.ATDNext.com. If you have further questions, please don’t hesitate to contact your usual ATD representative.
For more on ATD's recently announced bankruptcy, click below:
ATD Files For Chapter 11 Reorganization
