APS Holding Corporation Announces Overhaul of its Business Operations
12 June 1998
APS Holding Corporation Announces Overhaul of its Business OperationsInstallers' Service Warehouse Operation to be Integrated into Big A(R) Company Store Framework Closure of Underperforming Stores HOUSTON, June 12 -- APS Holding Corporation announced today that it is undertaking a restructuring of its business operations. In addition to the 32 company-owned stores closed during the first quarter, the Company intends to close approximately 115 additional underperforming company-owned stores and Installers' Service Warehouse (ISW) units during the second quarter, for a total of approximately 145. The restructuring will also include integration of APS' remaining ISW operations into the Big A(R) company-owned store framework and the consolidation of its distribution center network. As it has done in the past when operations have been closed, the Company is currently re-circulating the inventory from the closed locations through its distribution network. In conjunction with these closings, as previously announced in mid-April, the Company has closed its Seattle distribution center which had never been profitable. In addition, the St. Louis and Tulsa distribution centers have been converted to redistribution centers to help facilitate the Company's operational restructuring. APS has also begun a program to integrate its remaining ISW operations into the Big A company store framework under the Big A Express banner over time. This transition will take place during the remainder of 1998. Day-to-day responsibility for the combined company-owned store operation is now under the direction of Mike Preston, Senior Vice President. "The consolidations and closures reflect APS' efforts to appropriately address underperforming regions or specific operating units," said Bettina M. Whyte, Chief Executive Officer of APS Holdings. "APS' attention remains on its core and profitable business, the wholesale distribution of aftermarket automotive parts." Ms. Whyte added, "Going forward, we believe that our remaining network of company-owned units will enable APS to further reinforce its focus on both its loyal associated jobber network and local installers in most geographical regions of the United States." APS Holding Corporation is a national distributor of Big A brand and manufacturer branded automotive replacement parts, as well as tools, equipment, supplies and accessories. It sells to approximately 1,600 associated auto parts stores through 24 distribution centers and operates approximately 350 company-owned stores under the Big A and Big A Express brands. This news release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could differ materially from those contemplated by these forward-looking statements. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in this news release and those detailed from time to time in the Company's filings with Securities and Exchange Commission, including the Company's annual report on Form 10-K for the fiscal-year ended January 31, 1998 and the Company's quarterly report on Form 10-Q for the quarterly period ended April 25, 1998 and in the Company's other public reports and statements.