Chief Auto Parts Announces Lease of Major California Warehouse Facility
9 October 1997
Chief Auto Parts Announces Lease of Major California Warehouse Facility
New Warehouse Facility to Support Operations in Western United States
DALLAS, Oct. 9 -- Chief Auto Parts Inc. today announced the
signing of a ten-year lease of a major warehouse facility in Ontario, Calif.,
which will be used to support the company's operations in the western United
States. The 446,624 square foot facility is situated on 24.49 acres of land
and features more than 100 loading docks, separate access for automobiles and
trucks, parking space for approximately 385 automobiles and 125 tractor
trailer rigs, and 46,624 square feet of office space. The warehouse will
serve as the distribution hub for the more than 400 retail stores Chief
operates in California, Nevada and Arizona.
Located in San Bernadino County, the facility provides access to one of
the largest consumer markets in the United States. With a population of
approximately 30 million, California's citizens possess an effective buying
income of $445 billion, and generate annual retail sales in excess of
$200 billion. Forty-five percent of the California market is within one-hour
drive of San Bernadino, and Las Vegas, another of Chief's major markets, can
be reached with only a relatively short three-hour drive. Other companies
that have warehouse facilities in the area include Honda, General Electric,
Toyota, Sears, Whirlpool, and Coca-Cola.
"The facility's proximity to the greater Los Angeles area, its excellent
freeway, rail and air transportation, and its state-of-the-art design all
combined to make this property very attractive to us," said Bill Pantuso,
Chief's senior vice president of merchandising and distribution. "The
warehouse enables us to supply our existing stores in California, Nevada and
Arizona more efficiently and economically. Acquiring this additional capacity
also gives us greater flexibility in managing our growth plans -- both on the
retail and wholesale fronts -- in the western United States," said Pantuso.
Chief's retail stores in Texas, Arkansas and Tennessee -- which account
for about twenty-five percent of the company's approximately 550 stores -- are
supported by a major warehouse facility in Seagoville, Texas, which is located
just south of Dallas.
According to Chief's chairman, chief executive officer and president,
David H. Eisenberg, the existing Seagoville facility and the addition of the
Ontario warehouse strengthen the company's positioning for future growth in
both the western and central United States. "These two major warehouse
facilities solidify our corporate infrastructure and allow us to continue
building Chief into one of the leading auto parts and accessories chains in
America," said Eisenberg.
Gene Detchemendy, Chief's national director of real estate, served as the
primary negotiator for the company relating to the business aspects of the
lease and Asifa Sheikh, an in-house attorney with Chief, handled the legal
aspects of the lease agreement. Michael J. McCrary, senior marketing
executive with The Seeley Company, a commercial real estate firm in Ontario,
represented the owners of the property, Inland Empire Realty Holding Co., Inc.
Dallas-based Chief Auto Parts Inc. is one of the nation's largest auto
parts and accessories retail chains employing more than 5,800 employees in
approximately 550 retail stores located in Arkansas, Arizona, California,
Nevada, Tennessee and Texas.
With the exception of historical information, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties including, but not limited to, the risks detailed in Chief Auto
Parts' filings with the Securities and Exchange Commission. It is important
to note that the company's actual results could differ materially from those
discussed in such forward-looking statements.
SOURCE Chief Auto Parts Inc.