By Dana Mattioli
Potential buyers are kicking the tires of Pep Boys-Manny Moe
& Jack.
Private-equity firm Golden Gate Capital and other suitors have
recently expressed interest in buying the auto-parts and services
retailer, according to people familiar with the matter.
Pep Boys isn't working with an investment bank on a sale and
isn't currently in negotiations with any of the parties, one of the
people said. It isn't clear whether the company wants to sell and a
deal is far from certain.
Pep Boys was founded in 1921 and has more than 800 locations,
according to its website. The company sells everything from tires
to air fresheners and brake kits. It has been ailing amid weakness
in its tire business, and it has been spending to try to ignite
sales growth. The company posted a $27.3 million loss on sales of
$2.1 billion for its fiscal year ended in January. It is also in
the process of searching for a new chief executive after Mike Odell
resigned as CEO in September after six years in the post. Board
member John Sweetwood became interim CEO.
Pep Boys competes with larger rivals AutoZone Inc., which has a
$22 billion market value, and Advance Auto Parts Inc., which has an
$11 billion value.
Pep Boys had a market capitalization just shy of $500 million as
of Tuesday. Its shares are little changed over the past 15 years.
The stock fell slightly in regular trading Tuesday to close at
$9.25.
On Monday, longtime Pep Boys investor Gamco Investors Inc.,
which owns about 19% of the company's stock, said it nominated one
candidate to the company's board.
In 2012, a proposed $804 million takeover of Pep Boys by
private-equity firm Gores Group fell apart amid poor results at the
company.
Write to Dana Mattioli at dana.mattioli@wsj.com
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