Pit Stop Closed
Pit Stop Closed
Auto World Inc. (“Auto World”), a calendar year-end SEC registrant, is a leading automotive retail and service chain. Auto World operates exclusively in the automotive aftermarket industry. Auto World is engaged principally in the retail sale of automotive parts, tires, and accessories, automotive repairs and maintenance, and the installation of parts. Auto World has two primary operating unit formats: (1) Auto Boyz Retail Centers
(“Auto Boyz Centers”) and (2) Pit Stop Service & Tire Centers (“Pit Stop Centers”). As of April 15, 2007, Auto World operated 120 stores consisting of 90 Auto Boyz Centers and 30 Pit Stop Centers. Auto World operates approximately 1,800,000 gross square feet
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The majority of these charges are associated with the termination of operating leases. The amount of this charge is preliminary and remains subject to change, pending the outcome of negotiations with landlords and other third parties. The company intends to record the charges in the second quarter of the fiscal year ending June 30, 2007.
Mr. Bobby continued, “We have worked hard over the past few years to expand our auto parts and service business, and these efforts have been successful. However, our efforts to reverse significant performance declines within the freestanding Pit Stop
Service & Tire Centers have not been successful. The accelerating deterioration in the financial performance of these freestanding stores has convinced us that it is in the best interest of our company and of our shareholders to cease operations in these freestanding stores. This will enable us to refocus our efforts to ensure that our most productive divisions and formats are best positioned to deliver the returns that we and our shareholders want.”
“We are keenly aware of the effects of this decision, and we commend all our associates for their efforts and perseverance in recent years. We are working hard to make sure that, where possible, we place these associates in other positions within the company.” Mr.