SUNNY ISLES BEACH, Fla. — Citing various factors that have impacted business negatively, Icahn Enterprises L.P.'s IEH Auto Parts Holding L.L.C. — collectively Auto Plus — has filed for Chapter 11 bankruptcy protection.
The filing is limited to Auto Plus and will not have a "significant" impact on Icahn Enterprises, the financial holding company — whose holdings also include Pep Boys — stressed. Kennesaw, Ga.-based Auto Plus does business through 750-plus outlets throughout the U.S.
Since acquiring Auto Plus in 2015, Icahn Enterprises said it has invested "significantly" in restructuring initiatives and has loaned significant amounts to Auto Plus, but has been disappointed in the results of these investments and the continued losses that Auto Plus has experienced.
Among the negative factors Icahn cited for its decision to file for Chapter 11 are lessened demand, supply-chain disruptions, an inflationary environment and the effects of COVID-19.
As a result, Icahn Enterprises determined it would "no longer be prudent" to continue to loan money to Auto Plus at this juncture unless done in connection with a restructuring process.
Auto Plus expects to continue to operate its business in the ordinary course and also plans to run a sale process for substantially all of its assets during the chapter 11 case, which was filed Jan. 31 with the federal bankruptcy court for the Southern District of Texas in Houston.
Among the company's larger creditors are Federal-Mogul Corp., $20.6 million; Mann + Hummel Purolator Filters L.L.C., $16.3 million; Gates Corp., $9.1 million; Warren Distribution, $7.3 million; and Standard Motor Products Inc., $6.1 million.