ITASCA, Ill. (Jan. 8, 2004) — Midas Inc. has completed its restructuring moves, announcing a reduction in the automotive service chain´s term loan debt by $40.1 million.
Since starting the restructuring in March 2003, Midas closed all 77 Parts Warehouse Inc. quick delivery parts distribution centers, reduced company-owned Midas shops from 111 to 73, completed parts distribution agreements with AutoZone Inc. and UniSelect and closed all but one of 12 regional distribution centers in North America. The term loan reduction exceeded the company's goal of $33 million. The company said its debt level remains at $92.4 million before debt discount and accrued but unpaid interest.
In late 2003, Itasca-based Midas and Bridgestone/Firestone reached a deal for the chain's 1,900 outlets in North America to be authorized dealers of the Bridgestone and Firestone brands. Distribution will come through the tire maker's “family channel,” including independent dealers.
“Midas begins 2004 in a much improved financial position as a result of exiting the unprofitable distribution business and significantly reducing our inventories and debt levels,” Alan Feldman, president and CEO, said in a statement. “We expect to refinance our debt at lower interest rates during the first half of this year.”