The transaction is subject to certain unspecified closing conditions and is expected to reach completion by the end of this month. The company will use the proceeds to repay debt.
Neither the buyer nor the property locations were identified in a November 2 statement issued by the locally based company or in a filing with the SEC on that date. A spokeswoman for Pep Boys tells GlobeSt.com the questions were referred to the CFO who was not available for comment by deadline.
The company operates 592 stores in 36 states and Puerto Rico. During 2006, as earnings and common stock experienced significant declines, it enlisted Goldman Sachs to evaluate strategic alternatives, including a potential sale.
In July 2006, CEO Larry Stevenson resigned under pressure, and two major shareholders, New York City-based Barington Cos. Equity Partners LP and Pirate Capital of Norwalk, CT, gained representation on the board of directors. This March, Jeffrey Rachor, the former president and CFO of Charlotte, NC-based Sonic Automotive Inc., was named CEO and instituted a turnaround strategy.
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