Autobacs Strauss, the after-market auto parts and auto service provider, filed a chapter 11 bankruptcy petition in the Delaware Bankruptcy Court on February 4, 2009. As reflected in Autobacs’ declaration in support of its bankruptcy motions, Autobacs operates 86 retail stores and has approximately 1,450 employees. At the beginning of 2009, it listed assets valued at $75 million and liabilities of $72 million.
Autobacs is a subsidiary of Autobacs Seven, a Japanese auto parts retailer. Autobacs Seven formed the Debtor in March of 2007 through the purchase of bankrupt auto parts suppliers R&S Parts and 1945 Route 23 Associates. Autobacs Seven invested substantial assets in the Debtor in order to renovate stores and expand product lines. Although Debtor’s expansion allowed it to increase sales, it was never able to generate a profit.
Autobac’s objectives in bankruptcy include closing poor performing stores and focusing more on auto services. This proceeding is before the Honorable Christopher S. Sontchi.