💥New Chapter 22 Bankruptcy - American Tire Distributors Inc.💥

Replacement tire distributor files bankruptcy with term lenders set to take over.

On October 22, 2024, American Tire Distributors Inc. and 12 affiliates (collectively, the “debtors”) filed chapter 11 — uh, 22 — bankruptcy cases in legal counsel Kirkland & Ellis LLP’s new fave filing jurisdiction, the District of Delaware (Judge Goldblatt).* Whomever said that company-side work doesn’t lend itself to repeat clients has a solid counterpoint with this one. Long-time PETITION readers will recall that this sucker filed back in ‘18. It’s baaaaaack.

The debtors are one of the largest replacement tire distributors in North America based on … wait for it.. the dollar amount of wholesale sales and number of warehouses. So, like, not, profitability or some other real metric that might prove business viability. Noted.

Anyway, guys, we’re sure this time it will all work out. After all, “[t]he [d]ebtors commence these chapter 11 cases with a line of sight to successfully consummate a going concern sale.” You’ve gotta love it: the first filing was a debt for equity swap. The second filing is a going concern sale in chapter. What will the third filing be? A straight liquidation? Maybe just skip that step and whomever the new owners are can just foreclose out of bankruptcy. The possibilities are endless. These guys seem interested in tasting the bankruptcy menu, though, so you never know, 🤷‍♀️.