Autobacs Strauss Inc., a retailer of aftermarket auto parts, filed for Chapter 11 bankruptcy protection, as reported by Reuters.
The company listed assets of $75 million and liabilities of approximately $72 million, according to the filing.
Japanese-based Autobacs Seven Co. acquired the company in 2007. Under a series of loan agreements, Autobacs Seven had agreed to supply Autobacs Strauss with funds, but in December announced that it would no longer provide additional capital. The Japanese company stated that Autobacs Strauss had defaulted on payments and owes it about $42.4 million.
Autobacs Strauss said it will use the bankruptcy process to fix its operations and close underperforming stores. The company employees about 1,450 people.
The New Jersey-based company operates more than 88 stores throughout New York, New Jersey, Philadelphia and Bethlehem, Pennsylvania. The company was established in 1982 when R&S Auto acquired Strauss, a New York City auto-parts chain.