American Tire Seeks Bankruptcy After Deal With Lenders
- Company reached deal with lenders including Guggenheim, KKR
- Profits narrowed in recent years amid changing customer habits
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American Tire Distributors Inc., which sought bankruptcy protection in 2018 after the defection of two major manufacturers, has filed for Chapter 11 again as it considers a sale process to cut debt.
The company made the voluntary filing in Delaware with $1.9 billion of debt, according to a court document. It has entered into a restructuring support agreement with lenders “that contemplates transitioning ownership of the company through a competitive sale process,” according to a statement.