HARRISONBURG, Va. (Dec. 13, 2002)—Two more Ray Carr Tires Inc. retail shops were sold as the Harrisonburg-based dealership tries to recover from financial woes.
In the meantime, the company is expected to decide by the end of the year the future course of its wholesale business, which the dealership had hoped to restructure.
Magnolia Enterprises L.L.C. bought two retail shops in Harrisonburg and Charlottesville, Va., said Lee Diercks, a turnaround consultant with Clear Thinking Group in Hillsborough, N.J. Terms were not disclosed.
The shops join another in York, Pa., that was sold earlier to McCarthy Tire and Automotive Service Centers Inc., a Wilkes-Barre, Pa.-based retail/commercial dealership. McCarthy said that location already is in business.
Mr. Diercks said he did not have any information about Magnolia. Mark Callahan, a Harrisonburg attorney with Clark & Bradshaw who represented Magnolia in the sale, declined to comment about the company. Mr. Diercks said the retail stores are operating under the new ownership.
Mr. Diercks had been hired on in November to help the company restructure after financial difficulties. The retreading plant closed in early November, followed by the retail outlets.
With three retail outlets down, four other stores and a retreading plant remain up for sale, Mr. Diercks said. A fourth retail sale is pending, he said. The sales do not affect the Ray Carr Tire outlet in Waynesboro, Va., which has been under separate ownership for about 11 years.
Mr. Diercks said the wholesale division continues to operate, though factors such as competition are being weighed in the division's future.
“Obviously, the company is looking at all the options and trying to determine what the best situation for everyone involved is,” he said.