The Pep Boys - Manny, Moe & Jack
said its board has hired an adviser to help it consider strategic and financial options, and the company split its chairman and chief executive posts.
The auto-parts and car-repair concern said Goldman Sachs will serve as its long-term financial adviser and aid it in exploring any alternatives. "Our objective is to ensure that we are working to increase shareholder value," the Philadelphia-based company said.
Additionally, the company extended its contract with CEO Larry Stevenson. His pact had been scheduled to expire in April. At the same time, Pep Boys is separating the roles of chairman and CEO. Presiding director William Leonard has been named to the new position of nonexecutive chairman, effective immediately.
"Our merchandising initiatives and store refurbishment program have brought early successes, while our efforts to improve the service center business have required more time to take hold," the company said. "We remain confident that our exceptional team of over 20,000 associates will continue to stay focused on the business during this time, as we continue to strive to improve Pep Boys' profitability and positioning in the sector."
Pep Boys has 593 stores and more than 6,000 service bays in 36 states and Puerto Rico.
Shares of Pep Boys were lately down 69 cents, or 4.3%, to $15.55. The stock has traded in a range of $11.75 to $18.80 this year. The company currently has a market capitalization of roughly $855 million.