ATD enters voluntary chapter 11

Huntersville, NC – American Tire Distributors, Inc. announced that it is implementing specific steps to maximize value and strengthen the Company’s financial foundation as it continues supporting manufacturer partners and customers across its nationwide distribution network.

The Company has entered into a restructuring support agreement (the “RSA”) with certain lenders, including credit funds and accounts managed by Guggenheim Partners Investment Management, LLC, KKR, Monarch Alternative Capital LP, Sculptor Capital Management, Inc., and Silver Point Capital, L.P., representing approximately 90% of the outstanding obligations under the Company’s Term Loan (collectively, the “Ad Hoc Lender Group”) that contemplates transitioning ownership of the Company through a competitive sale process. The Company and Ad Hoc Lender Group are in discussions with respect to an asset purchase agreement that, if implemented, would transition ownership of the Company to the members of the Ad Hoc Lender Group. The contemplated transaction would also eliminate a significant amount of debt and provide access to new capital, positioning the business as a stronger partner to manufacturers and customers who rely on ATD to improve their productivity, profitability, and performance.

To implement the terms of the RSA and conduct a value-maximizing sale process, the Company and certain of its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware (the “Court”). During this process, ATD will continue to operate across its nationwide distribution network as the organization remains focused on supporting its manufacturer partners and providing its customers with tires, wheels, related tools, and accessories to support their business.

“For nearly 90 years, ATD has continuously evolved to meet the dynamic shifts and challenges facing the auto aftermarket. 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,” said Michael Feder, Interim Chief Executive Officer of ATD and Partner & Managing Director (retired, on recall) at AP Services, LLC, an affiliate of AlixPartners, LLP. “We are confident that entering into this process with the support of the Ad Hoc Lender Group will enable ATD to execute its business strategy and achieve our long-term objectives.”