FORT SMITH, Ark. (March 15, 2002) — Wingfoot Commercial Tire Systems L.L.C., as part of an overall consolidation of activities, has sold a retread plant and commercial tire service location to Colony Tire Corp. of Edenton, N.C.
The deal, which closed in late Febrary, broadens Colony Tire's territory into southern Virginia and expands its commercial business by about 10 percent, according to Charles Creighton, president. Colony´s distribution footprint now covers a triangle stretching from Edenton on the Atlantic Coast north to Colonial Heights and then southwest to Raleigh, N.C.
Colony Tire had an interest in the acquired stores for several years before closing the deal in February, Mr. Creighton said. The Colonial Heights Next-Tred plant was completely renovated two years ago, he said, but has operated at less than capacity since then. In addition to the commercial store/retread plant in Colonial Heights, Colony acquired a commercial outlet in Ashland, Va.
"Our job now is to retain the business Wingfoot had there, and build on it," Mr. Creighton said.
The deal increases Colony´s reach to 31 outlets—26 in North Carolina and five in Virginia—plus two retread shops, two warehouses and a separate parts business.
In the past 12 months, Wingfoot – as part of its consolidation of the Goodyear Commercial Tire Centers, Treadco Inc. and Brad Ragan locations — has pared down the number of retread shops it operates by a net of 11, to 61, by closing or selling various locations. Among those sold was a plant in Clarksville, Ind., to Raben Tire Co. last year.