The well-known auto parts supplier recently had more that it's share of downfall to their bottom line lately. First, there was the possible purchase from the private equity firm, Gores Group. As a result of the financial trouble, this pending acquisition would have worked out well for the company. Unfortunately, the equity business walked away from the $791 million deal and now the stocks shares have been suffering. While pondering the deal, Gores Group cited serious problem with Pep Boys business, but no other details have been mentioned.
The good news is that Pep Boys is a prominent company and this helps them tremendously during their times of trouble. While regaining their barrings, perhaps Pep Boys can also take a cue from other Auto retailers who have "raced ahead and taking advantage of America's need to keep used cars running" according to an article in Forbes.com.
Again, Pep Boys has the reputation and familiarity that works for them, but re-branding and rethinking the company vision could be the way to recover from the recent losses. There is no word as of yet if there is another buyer in the running for the troubled retailer. They may be down, but definitely not out. In a tough economy some companies do recover well.
Currently shares of Pep Boys tumbled 22.5% to $8.59 in pre-market trading.
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