Advance Auto Parts To Buy Assets Of Trak Auto Parts Stores – Brief Article
Advance Auto Parts, Inc. said that it has received bankruptcy court approval to acquire certain assets of Trak Auto Corp. (Trak), including the leases on up to 55 stores operated by Trak in northern Virginia, Washington D.C. and eastern Maryland. The closing occurred on July 29, 2002, although the transfer and conversion of these stores will take place over the next three to four months.
“We are excited about the opportunity to expand our presence and serve more customers in the metropolitan Washington D.C. area, as well as the surrounding communities.” said Larry Castellani, Chief Executive Officer of Advance. “We are looking forward to more effectively serving the Do-it- Yourself customer, as well as the professional installer, from approximately 75 locations in these markets. We are also pleased to welcome the Trak store team members who will be joining Advance Auto Parts.”
The terms of the agreement provide that Advance Auto Parts will assume the existing leases on the acquired stores and will pay up to $16 million for inventory and fixtures. The acquisition of these approximately 50 stores will take the place of new store openings, and consequently, Advance Auto Parts maintains its 2002 total new store opening plan of 100 to 125 stores.
The conversion and re-branding of the stores is expected to begin by early September and be completed before the end of 2002, the company said.
The integration of the Discount Auto Parts stores, acquired in November 2001, continues on plan and the conversion of the Trak Stores will not impact that integration, the company said. 108 of the 189 Discount Auto Parts stores in Georgia, Mississippi, Alabama, the Florida Panhandle, Louisiana and South Carolina have been converted to Advance Auto Parts stores to date and the remainder will be completed by the end of the year, according to the company. Merchandise conversions in the Florida markets will be completed before the end of the third quarter, the company added.
The Discount Auto Parts stores have continued to perform well during the integration process, the company said.
Advance Auto Parts, Inc. is based in Roanoke, Va., and is the second largest auto parts chain in the nation with approximately 2,400 stores in 38 states, Puerto Rico and the Virgin Islands.
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