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Letter to the Editor

Pep Boys to Close 33 Stores and Cut Jobs

The Philadelphia-based company said its cost-cutting moves, the first by new Chief Executive Officer Lawrence Stevenson, are aimed at saving about $11 million annually.

Pep Boys said it expects to take a second-quarter pre-tax charge of about $85 million as a result.

Pep Boys said the charge will include $60 million to write down fixed assets and inventory; $10 million for store closure and severance costs; and a $15 million charge for certain unrelated legal and financing costs and asset impairments.

Following the restructuring, Pep Boys will operate 596 stores in 36 states and Puerto Rico, and employ more than 22,000.

The 33 stores to be closed account for about five percent of its 629 current stores. The 700 store employees, about 3 percent of total employees, assumes that about 200 store employees are reassigned.

Pep Boy stores to be closed include 11 in California; five in Texas, four in Florida, three in Pennsylvania, two in New York and one each in Arizona, Georgia, Illinois, Massachusetts, New Jersey, North Carolina, Ohio, and Virginia.

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