Icahn Enterprises L.P., has issued a statement regarding its IEH Auto Parts Holding LLC and its subsidiaries and its decision to file for Chapter 11 for that business unit.
In its statement on the aftermarket parts distributor held within the Automotive segment of IEP,it says “various factors have negatively impacted this business as well as the industry in general, including lessened demand, supply chain disruptions, an inflationary environment and the effects of COVID-19. Therefore, on January 31, 2023, Auto Plus determined to file a voluntary chapter 11 case.”
This proceeding is limited to Auto Plus and will not have a significant impact on IEP, says the organization.
Icahn Enterprises L.P., a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.
Automotive segment holdings include the Pep Boys, Aamco Transmission and Precision Tune Auto Care service businesses as well as the Auto Plus aftermarket distribution business.
IEP acquired the Auto Plus business in 2015 from Uni-Select USA Inc. and represented essentially all of Uni-Select’s U.S. auto parts distribution business (it retained the FinishMaster PBE supply business). At the time the transaction included 22 distribution centers and satellite locations, 259 corporate owned stores and more than 3,500 team members.
“Since acquiring Auto Plus, IEP has invested significantly in transformation and restructuring initiatives and has loaned significant amounts to Auto Plus but has obviously been disappointed in the results of these investments and the continued losses that Auto Plus has experienced. As a result, IEP has determined that 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.