When you walk down to the local Pep Boys to replace your AC Condenser or Radiator Fan there may be a sign that reads “Under New Management.” The iconic parts company recently sold to a Los Angeles equity firm for $800 million dollars. There may be a sign out front, but not too much else should change. The new owners plan on keeping management in place, and you know they will keep Manny, Joe and Jack around. Pep Boys would just not be the same with those giant headed mascots. There are no plans to shut down any of the 729 stores, or to let go any employees.
Pep Boys hit a rough spot in the road because of increased competition and a bad economy. They posted losses for four straight years. While their competitors saw growth during tough times, because of people wanting to fix their old cars instead of buying new ones, Pep Boys did not. Some analysts believe it is because Pep Boys has both a parts and service division while their competitors only focus on one.
The new owner speculates that it will take a while to get Pep Boys back in the fast lane, but they are confident it will happen.
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