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. To implement the agreement and conduct a value-maximizing process, ATD 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.
On February 10, 2025, ATD received Court approval to proceed with the sale transaction of substantially all of its assets to an entity owned by certain of our existing lenders. This approval marks one of the final steps in our sale process, paving the way for us to complete the sale transaction by February 28, 2025.
We are confident that the steps we have taken over the last several months will position the business for the future.
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.