American Tire Says It Can Grow Without Goodyear and Bridgestone

Distributor says other brands can fill gap from defections
Company tells lenders it has ‘robust pipeline of new business’

Automotive tires sit in stacks at the Continental Tire Sumter plant distribution warehouse in Sumter, South Carolina, U.S., on Thursday, Dec. 17, 2015. The lowest U.S. rubber prices since 2009 have helped tiremakers expand profit margins and provide a strong outlook for 2016 as North American demand for auto parts continues to climb toward pre-recession levels, according to reports by Bloomberg Industries.Photographer: Luke Sharrett

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By Katherine Doherty and Josh Saul

July 13, 2018 at 1:17 PM UTC

Updated on

July 13, 2018 at 5:56 PM UTC

This article is for subscribers only.

American Tire Distributors Inc., seeking to bolster itself after two of the biggest brand names pulled their business, said other suppliers will fill the gap and that it’s already posted sales gains in the first half of this year.

ATD, North America’s largest tire distributor, had “strong success” in converting to other suppliers and has a “robust pipeline of new business generation,” the company told lenders during a conference call Friday. First-half sales advanced 5 percent from the same period last year as it continued to sell off Goodyear and Bridgestone tires still in its inventory, according to ATD. Its deeply distressed bonds rallied to their best levels for July.