Pep Boys

The Pep Boys: Manny, Moe & Jack
Private
Industry Specialty retail and automotive repair and Tires
Founded August 1, 1921 (1921-08-01) (as Pep Auto Supplies)
1923 (1923) (as Pep Boys)
Founders Maurice (Moe) Strauss
Emanuel (Manny) Rosenfeld
W. Graham (Jack) Jackson
Moe Radavitz
Headquarters 3111 West Allegheny Avenue, Philadelphia, Pennsylvania, U.S.
Number of locations
 804 (2016)
Key people
 Brent Windom (CEO)
Products Auto parts, service and tires
Parent Icahn Enterprises
Website www.pepboys.com

The Pep Boys: Manny, Moe & Jack, (branded and commonly abbreviated as Pep Boys) is a full-service and tire automotive aftermarket chain.

Originally named Pep Auto Supplies, the first store was founded in Philadelphia, Pennsylvania in 1921 by Emanuel (Manny) Rosenfeld, Maurice L. (Moe) Strauss, W. Graham (Jack) Jackson, and Moe Radavitz.

Currently headquartered in the Philadelphia neighborhood of East Falls, Pep Boys operates over 800 stores and approximately 7,500 service bays in 35 states and Puerto Rico. Along with its wide range of vehicle maintenance and repair capabilities, the company also serves the commercial auto parts delivery market. It is also a seller of replacement tires in the United States and in 2005, it was named one of the 500 fastest-growing companies in the U.S.[1][2]

History

Pep Boys store, Farmington Hills, Michigan
Pep Boys logo from June 6, 2004 to July 22, 2013.

The original "Pep Boys" were Emanuel "Manny" Rosenfeld, Maurice "Moe" Strauss, Graham "Jack" Jackson, and Moe Radavitz, four friends who in August 1921[3] chipped in $200 apiece to open a single auto parts store. They dubbed it Pep Auto Supplies after noticing a shipment of Pep Valve grinding compound on the shelves.[4]

That name was changed because of a policeman who worked near the store: Every time the officer stopped a car for not having an oil wick burning during nighttime hours, he would tell the driver, "Go see the boys at Pep" for a replacement.[5] In 1923 on a trip to California, Moe Strauss noticed that many successful West Coast businesses used their owners' first names. One he liked in particular was a dress shop called "Minnie, Maude and Mabel's". As soon as Strauss returned to Philadelphia, the store's name was officially changed to "The Pep Boys — Manny, Moe & Jack". (Radavitz had cashed out the previous year.)[6]). Soon, the partners had commissioned the Manny, Moe and Jack caricatures that still serve as the company's logo. When Jackson left in 1925, his caricature was replaced with that of Moe's brother, Isaac (Izzy) Strauss.[6] (The company name's reference to "Jack" remained unchanged.) No further changes were made to the logo until 1990, when Manny's cigar was removed.[7]

By the early 1930s, Pep Boys had 40 stores in Philadelphia, and Manny's brother, Murray Rosenfeld, had opened the first West Coast Pep Boys store. In 1939, Izzy Strauss left to form his own auto supply business in Brooklyn, Strauss Stores, which later merged with Roth & Schlenger Home and Auto to form R&S Strauss, the ancestor of Strauss Discount Auto, later known as Strauss Auto, which closed its doors on June 4, 2012.[8]

In 1946, Pep Boys went public, and Manny Rosenfeld became the company's first corporate president, a position he held until his death in 1959. Moe Strauss served as president from 1960 to 1973 and remained a member of the board of directors until his death in 1982. In 1986, Mitch Leibovitz became the first non-founding family member to be named company president. Manny's grandson, Stuart Rosenfeld, Pep Boys' vice president of distribution, is the only founding family member currently in company management. The Strauss and Rosenfeld families continued to control approximately one-fifth of the company's stock until the early 1990s.[6]

Today

In 2006 major stockholders Barington Capital Group and Pirate Capital LLC, whose combined stake exceeds 25% of Pep Boys common stock, engineered a reorganization of the company's management and board of directors, citing a lack of strategy and need for change.[9]

In May 2008, Pep Boys CEO Jeff Rachor left the company after 13 months to pursue a luxury automotive dealership venture with Michael Dell (founder of Dell). Chief Operating Officer Michael R. Odell replaced him as CEO.[10]

On October 13, 2009, Pep Boys acquired tire retailer Florida Tire for $4.35 million. The acquisition gave Pep Boys ten service-and-tire centers in the Orlando market that generate sales of $14 million a year.[11] Pep-Boys is also opening small service-only stores.

In April 2011, Pep Boys acquired seven stores from tire retailer Big O Tires. The acquisition gave Pep Boys service-and-tire centers in Washington, in the Pacific Northwest.[12]

In May 2011, Pep Boys acquired tire retailer Big 10 Tires. The acquisition gave Pep Boys an additional eighty-five service-and-tire centers in Georgia, Florida, and Alabama, including concentrations around Atlanta and Orlando.[13]

In June 2011, Pep Boys acquired seven locations from automotive repair company My Mechanic. The acquisition gave Pep Boys additional locations in the Houston, Texas metropolitan area.[14]

On January 29, 2012, Pep Boys announced that it had agreed to be acquired by The Gores Group, a Los Angeles-based private equity investment company, for $15 per share, or approximately $1 billion.[15] But four months later, May 30, 2012, it was announced that the deal had fallen through.[16]

On September 6, 2013, Pep Boys acquired seventeen Discount Tire Centers in southern California, enabling the company to boast, "Seventy-five percent of Los Angeles-area residents now live within three miles of Pep Boys." [17]

On September 26, 2014, Michael O'Dell resigned as CEO and president. John Sweetwood became interim CEO.[18]

On June 15, 2015, Scott P. Sider, group president of Hertz Corporation's Rent-A-Car Americas, became the company's new CEO.[19]

On October 26, 2015, Bridgestone Tire Corp. agreed to purchase the company for $835,000,000.[20]

On December 30, 2015, Philadelphia-based Pep Boys (PBY) said it terminated the previously announced acquisition deal with Bridgestone Retail Operations, a U.S. unit of Japan tire maker Bridgestone, and signed a merger agreement with a subsidiary of Icahn Enterprises.

On February 4, 2016, Icahn Enterprises announced that it closed its acquisition of Pep Boys in an all-cash deal worth $18.50 per share or approximately $1.03 billion.[2]

NASCAR sponsorship

Pep Boys began sponsoring NASCAR two-time Daytona 500 champion driver Sterling Marlin's No. 14 car owned by Ginn Racing in 2007.[21] The company also sponsored the Pep Boys Auto 500, a race held at the Atlanta Motor Speedway in October 2008 and 2009.[22]

References

  1. ↑ "Archived copy". Archived from the original on 2011-09-29. Retrieved 2011-06-08.
  2. 1 2 Pep Boys. "Icahn Enterprises Completes Acquisition of Pep Boys". Retrieved 29 February 2016.
  3. ↑ "Pep Boys Celebrates 90th Anniversary; Announces Search For Vintage Memorabilia - THE SHOP". TheShopMag. 2011-08-03. Retrieved 2016-04-18.
  4. ↑ "The Pep Boys Story," Pep Boys Auto, Internet website , accessed 22 June 2015.
  5. ↑ Ibid.
  6. 1 2 3 Pep Boys Company History Retrieved May 12, 2011.
  7. ↑ "The Pep Boys Tune Up Image by Losing Cigar: Advertising: The company stubs out the familiar stogie in its logo to coincide with the Great American Smokeout.". latimes. Retrieved 26 October 2015.
  8. ↑ Strauss Auto company history Archived May 5, 2011, at the Wayback Machine. Retrieved May 12, 2011.
  9. ↑ "Barington Capital Group Supports Decision of Pep Boys Board to Engage Financial Advisor to Explore Strategic Alternatives for the Company.". Retrieved 26 October 2015.
  10. ↑ "Archived copy". Archived from the original on 2008-04-27. Retrieved 2009-04-21.
  11. ↑ "Pep Boys to buy Florida Tire". Philadelphia Business Journal. Retrieved 26 October 2015.
  12. ↑ "Pep Boys buys 7 Big O stores in Washington". Tire Business. Retrieved 26 October 2015.
  13. ↑ "Pep Boys buys Big 10 Tires". Philadelphia Business Journal. 5 May 2011. Retrieved 26 October 2015.
  14. ↑ "Pep Boys buys 7 Houston-area 'My Mechanic' stores". Tire Business. Retrieved 26 October 2015.
  15. ↑ Hazel, Debra (January 29, 2012). Pep Boys Garners $1B in Acquisition Bid GlobeSt.com Retrieved February 1, 2012
  16. ↑ Pep Boys Shares Dive as Buyout Blows Up FoxBusiness.com Retrieved August 20, 2012
  17. ↑ "The Pep Boys Story," Pep Boys Auto, Internet website , accessed 22 June 2015.
  18. ↑ Pep Boys CEO Mike Odell Resigns; Names John Sweetwood Interim Chief Archived February 14, 2015, at the Wayback Machine.
  19. ↑ "Pep Boys Names Scott P. Sider Chief Executive Officer". 15 June 2015. Retrieved 26 October 2015.
  20. ↑ Bridgestone buying Pep Boys for $835 million
  21. ↑ "Archived copy". Archived from the original on 2011-07-07. Retrieved 2009-04-21.
  22. ↑

Sources

Further reading

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