HUNTERSVILLE, N.C.—American Tire Distributors Inc. (ATD) filed for Chapter 11 bankruptcy protection for the second time since 2018.
ATD, the largest independent wholesale tire distributor in the U.S. with 2023 sales of $5.7 billion, called the voluntary filing—made in the U.S. Bankruptcy Court for the District of Delaware—a means to position itself as a stronger partner to manufacturers and retail customers as it contemplates a sale through a competitive sale process.
During this process, ATD said it will continue to operate its nationwide distribution network and will remain "focused on supporting its manufacturer partners and providing its customers with tires, wheels, related tools, and accessories to support their business."
In August, ATD hired Michael Feder as interim CEO, replacing Stuart Schuette, who resigned after serving as CEO and president since 2016. Feder previously was a manager director at AlixPartners, a global consulting firm, for 23 years.
"For nearly 90 years, ATD has continuously evolved to meet the dynamic shifts and challenges facing the auto aftermarket," Feder said in a statement.
"Today, we are taking further steps to position ATD for our next phase as a stronger distribution partner to our manufacturers and customers as we return to our roots and hone our core value proposition as a wholesale distributor."
ATD has a restructuring support agreement in place with certain lenders, including credit funds and accounts managed by Guggenheim Partners Investment Management, L.L.C.; KKR; Monarch Alternative Capital L.P.; Sculptor Capital Management, Inc. and Silver Point Capital, L.P.
ATD estimated those lenders account for approximately 90 percent of the outstanding obligations.