For nearly 90 years, American Tire Distributors has stood in this industry and continuously evolved to meet the dynamic shifts and challenges facing the auto aftermarket. We are now taking steps to position ATD for our next phase as a stronger distribution partner to manufacturers and customers who rely on us to improve their productivity, profitability, and performance.
ATD has entered into an agreement that contemplates transitioning ownership 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 new financial resources to support our business on a go-forward basis. To implement the agreement and conduct a value-maximizing process, we've commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code, during which we will continue to support the manufacturer partners and customers across our nationwide distribution network.
We are confident that the steps we’re taking will enable ATD to continue our proud history of leadership and innovation as we return to our roots and hone our core value proposition as a wholesale distributor.
During this process, we expect to operate normally across our nationwide distribution network. The ATD team remains as focused as ever on supporting our manufacturer partners and our customers.
