A leading company in the auto repair and tire service sector has revealed plans to close 145 stores due to ongoing financial difficulties.
This decision follows a fiscal year marked by a noticeable decline in sales, reflecting wider challenges faced by the industry. Sales figures for the year ending March 29, 2025, showed a 4.9% decrease, with revenue in the last quarter falling from $310 million in 2024 to $295 million.
According to reports from The Sun, these closures highlight a troubling trend in the auto repair market, which continues to struggle amid shifting economic conditions and changing consumer behaviors.
Sales Decline and Auto Repair Store Closures
Monro Inc., a major player in the auto repair and tire service industry, announced the closure of 145 underperforming stores as part of a restructuring plan following a difficult fiscal year.
The 145 store closures will begin in the first quarter of fiscal 2026, starting March 30, 2025, and are expected to reduce annual sales by approximately $45 million.
This follows the closure of three stores in the final quarter of fiscal 2025, reflecting a continued effort to optimize the company’s retail footprint.
After completing these reductions, Monro will operate a total of 1,260 company-owned stores along with 48 franchised locations spread across the United States.
These adjustments represent a significant contraction in the number of active locations and indicate a strategic shift aimed at focusing resources on more profitable and better-performing sites within the network.
CEO’s Strategic Plan
Peter Fitzsimmons, who became CEO recently, commented on the situation in a statement dated May 28, 2025:
“As I reflect on my first eight weeks, I’m pleased with our detailed assessment of the business. We have identified four key areas of focus as opportunities for improvement.”
These four areas include shutting down underperforming stores, improving customer experience and sales tactics, acquiring new profitable customers, and boosting merchandise productivity.
“While our improvement plan will take time to implement, I believe that we will drive enhanced profitability and increase operating income and total shareholder returns in fiscal 2026,” Fitzsimmons added.
Broader Industry Challenges and Bankruptcies
Monro’s difficulties occur amid a wider upheaval in the auto repair and tire aftermarket industry. Several major companies have filed for bankruptcy in recent months:
- Wheel Pros, operating under the Hoonigan brand, filed for Chapter 11 bankruptcy on September 9, 2024. The company plans to eliminate $1.2 billion in debt and secure $570 million in new capital through an exit facility.
- Accuride Corporation filed for Chapter 11 on October 9, 2024, citing post-Covid impacts, inflation, supply chain disruptions, and global instability as key factors behind its financial struggles.
- American Tire Distributors (ATD) filed for Chapter 11 on October 22, 2024. ATD carried over $1.9 billion in funded debt, a result of aggressive expansion during the 2019–2021 tire boom, followed by a significant decline in demand, shrinking sales channels, and rising costs.
