Pep Boys to consider sale

Philadelphia -- The Pep Boys – Manny, Moe & Jack is reviewing its options.



The chain announced that its board directors has commenced a review of strategic alternatives to enhance shareholder value, including a possible sale, merger or other form of business combination or strategic transaction.



“The board is encouraged by the value-enhancing initiatives that our management team has been pursuing and the progress that we have made in growing comparable store sales, driving gross margin returns, reducing expenses, shrinking inventory and unlocking the value of our real estate by rationalizing our store base,” said chairman Bob Hotz. “However, in keeping with our commitment to act in the best interests of all shareholders, and given that a number of potential strategic and financial buyers have expressed an interest in discussing a transaction with Pep Boys, we have determined that it is prudent to explore strategic alternatives to determine the best opportunities for enhancing shareholder value at this time.”



The announcement comes less than a month after the retailer avoided a fight with its largest shareholder, GAMCO Asset Management Inc. GAMCO argued that Pep Boys’ financial performance was below par and that "the board could be improved by the addition of directors who have strong, relevant backgrounds and who are committed to fully exploring all opportunities to unlock shareholder value.”