will close 38 unprofitable stores and two distribution centers and will eliminate about 1,200 jobs.
The automotive parts retailer said the closings are part of a profit enhancement plan that will significantly reduce its infrastructure and operating expenses. The plan also includes a reduction in the number of field and distribution center supervisors, as well as the consolidation of store support centers, which will result in the elimination of about 300 additional positions.
The company will include an estimated $60 million pretax charge in its third-quarter earnings statement, which will be released Nov. 10.
Shares of Pep Boys were recently trading down 6 cents, or 1.4%, to $4.50 in
New York Stock Exchange
composite trading. The 52-week high is $13.