Pep Boys
Automotive aftermarket chain providing parts, accessories, and services.
PE-OWNED
Acquired by KKR2016-02-01
What Made It Great
One-stop automotive service and parts destination with installation services
What PE Will Likely Do
Pep Boys will close a significant number of their retail stores, reducing customer convenience and access to their services
The quality and selection of automotive parts, accessories, and services at remaining Pep Boys locations will decline as inventory levels are reduced and maintenance is deferred
Pep Boys will increase prices on parts, accessories, and services to boost profits, reducing affordability for consumers
Pep Boys' expert technical staff and installation services will be scaled back, leading to longer wait times, less personalized attention, and poorer quality work for customers
Expected Timeline
“0 to 6 months months”
Announcements about 'transforming the business' and 'optimizing the store footprint'
“6 to 12 months months”
First round of store closures and staff reductions announced, inventory levels start to decline
“12 to 24 months months”
Noticeable reduction in part and accessory selection, longer wait times for installations and repairs, and general decline in store upkeep and appearance
“24 to 48 months months”
Bankruptcy rumors begin to circulate, more aggressive cost cutting measures implemented including further store closures and reduced technical staff
“48 to 60 months months”
Potential bankruptcy, restructuring, or fire sale of Pep Boys assets
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers should expect reduced selection, higher prices, and lower quality of parts, accessories, and services at Pep Boys locations
Customers may want to consider alternative automotive service providers that are not owned by private equity firms
Consumers should be prepared for potential store closures that could make accessing Pep Boys services more inconvenient
Alternatives
Employee-owned warehouse retailer
Publicly traded retailer with strong values