Goodyear closing 92 company-owned stores in US

Tire Business staff report

Akron, Ohio -- Goodyear will close 92 underperforming company-owned stores in North America by year-end to eliminate about $9 million in annual losses related to those retail outlets.

Goodyear did not name the locations affected because it needs to communicate with the roughly 500 full-time and 100 part-time impacted employees as well as property owners of leased facilities, said Scott Vogel, vice president, retail operations, North American Tire.

The action will result in after-tax charges of approximately $30 million, of which $15 million will be recorded in the third quarter of 2008. Goodyear did not indicate the expected impact on sales.

“Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns,” Mr. Vogel said. “Taking this action now will allow us to focus our attention on locations with the best long-term potential. It will help position Goodyear to be a stronger competitor.”

As of Jan. 1, Goodyear operated 758 company-owned stores under its Goodyear Auto Service Centers and Just Tires nameplates.

From Tire Business (A Crain publication)