Trak Auto

Last updated
Trak Auto Corporation
Company typePrivate
IndustrySpecialty retail
Founded1979;45 years ago (1979)
Founders Robert Haft, Herbert Haft
Defunct2001;23 years ago (2001)
Fate Liquidation
Successor Advance Auto Parts
Headquarters Landover, Md., USA
Number of locations
333 (1993)
Area served
Washington, D.C. metro area; Richmond, Virginia metro area; Chicago metro area; Los Angeles metro area; San Diego metro area
ProductsReplacement automotive parts & accessories
Parent Dart Group (1979–1997), Restoration Auto Parts (1997–2001)
Website "Archived official website". Archived from the original on 2001-12-11. Retrieved 2017-03-12.

Trak Auto Corporation was an American retail chain specializing in automotive parts and accessories based in Landover, Maryland. Founded by Robert Haft in 1979, [1] at its peak in 1993 it operated 333 stores around the United States under the Trak Auto, Super Trak, and Super Trak Warehouse concepts. A declining market, stiff competition, and management problems led to a steep decline and bankruptcy, with its remaining stores acquired by and converted to Advance Auto Parts in 2002.

Contents

History

Trak Auto formed part of the stable of discount operations owned by the Dart Group, the family holding company of Herbert Haft, and grew indirectly out of Dart Drug. Part of Dart Drug's strategy was to offer additional merchandise beyond the usual prescription drugs, health and beauty aids, and other merchandise that is typically found in a neighborhood drug store during the early 1970s. Robert Haft noticed that they were selling large volumes of auto supplies in his drug stores. His research discovered that 80 percent of aftermarket auto supplies were sold by independent, mom-and-pop operations, leaving room for a national discount retailer. After studying competitors like Sears and the Pep Boys, Trak Auto was launched in 1979. [2]

Trak Auto expanded rapidly, following the same aggressive strategy as its recently formed sister company, Crown Books: heavy discounts on high-volume products from mostly suburban standalone locations. In 1982, it partnered with Los Angeles-based Thrifty Corp, owners of the Thrifty Drug Stores chain, to open Trak Auto stores in Southern California. The venture lost heavily, which Haft blamed on insufficient volume— "We needed 50 stores in Chicago and 100 in Los Angeles to break even" he would tell Fortune magazine in a 1987 interview. [2] After Thrifty agreed to be acquired by Pacific Lighting in 1986, it sold its stake in the West Coast Trak Auto and Crown Books operations back to Dart, paying $11.7 million to be relieved of $40 million in loan guarantees. [3] In an attempt to increase revenue, they advertised as having stores that stayed open later than most auto parts stores, with a few stores open 24 hours.[ citation needed ]

In 1993, at its peak, Trak Auto operated 333 stores in the Washington, D.C., Richmond, Chicago, and Los Angeles metro areas, but shifted strategy around this time to closing unprofitable stores and replacing them with large-format Super Trak and warehouse store Super Trak Warehouse locations; the first Super Trak opened in 1992. [4] In 1995, it acquired National Auto Stores, which operated stores in the Pittsburgh area, with plans to convert them to its superstore formats. [5] But the early 1990s saw the company roiled by management struggles at the Dart Group, amidst disagreements between Herbert and Robert Haft, and Herbert's divorce with his wife Gloria. The acrimonious family split led Businessweek to speculate that the elder Haft was deliberately using accounting measures to undermine the companies, to weaken Gloria and Robert: Trak Auto reported 1994 income had declined by 98% over the year before. [6]

The Haft dispute was settled by the courts in 1995, and Richard Stone brought in to serve as the Dart Group's new CEO in 1997. But while the management situation had stabilized, the company was in a weak position. Sales across the category were flat, as fewer people were interested in do-it-yourself car repairs and improvements, and a strong economy allowed more people to pay for service. [7] In October 1997, Trak Auto withdrew from the Southern California market, selling its 80 stores to CSK Auto, which were rebranded as Kragen Auto Parts. [8] The following year, the Dart Group itself was acquired by supermarket operator Richfood, [9] which was interested only in the Shoppers Food & Pharmacy operations. Trak Auto was quickly sold off in 1999 to HalArt LLC, which sought to operate it alongside Cleveland-based Forest City Auto Parts and other automotive chains. [10] [11] [12]

This venture failed, however, and HalArt, which did business as Restoration Auto Parts, [13] and Trak Auto filed for Chapter 11 bankruptcy in July 2001. [14] By that time, Forest City had already gone bankrupt and been liquidated. The bankruptcy court ultimately ordered the company liquidated. The Midwestern locations were closed, and the leases for 55 stores in Northern Virginia, Washington D.C. and eastern Maryland were assumed by Advance Auto Parts in 2002, which subsequently converted them to its brand. [15]

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References

  1. ↑ Lewyn, Mark (June 27, 1993). "Behind The Bloody Battle In Dart's Boardroom". BusinessWeek . Archived from the original on 2016-03-06. Retrieved 2017-03-12.
  2. 1 2 Saporito, Bill (June 22, 1987). "The Most Feared Family in Retailing". Fortune .
  3. ↑ Groves, Martha (June 10, 1986). "Thrifty Sells Stakes in Crown Books, Trak Auto". Los Angeles Times . Archived from the original on 2015-11-16. Retrieved 2015-11-08.
  4. ↑ "Post 200: Trak Auto Corp". Washington Post . April 28, 1997. Archived from the original on March 5, 2016. Retrieved September 17, 2017.
  5. ↑ McQuaid, Kevin L. (December 27, 1995). "Trak Auto acquiring Pittsburgh chain". Baltimore Sun . Archived from the original on 2015-11-17. Retrieved 2015-11-08.
  6. ↑ Lewyn, Mark (May 15, 1994). "Another Hair Raiser at the Hafts". BusinessWeek . Archived from the original on 2015-11-17. Retrieved 2017-03-12.
  7. ↑ Peltz, James F. (May 20, 1998). "Overhauling Auto Parts Sales Retail". Los Angeles Times . Archived from the original on November 17, 2015. Retrieved November 8, 2015.
  8. ↑ "Trak Auto to Sell 80 California Stores". Los Angeles Times . Reuters. October 8, 1997. Archived from the original on November 17, 2015. Retrieved November 8, 2015.
  9. ↑ "Richfood to Buy Dart in $207-Million Deal". Los Angeles Times . Reuters. April 10, 1998. Archived from the original on November 17, 2015. Retrieved November 13, 2015.
  10. ↑ "Halart to Acquire Trak Auto for $53.2 Million". New York Times . March 13, 1999. Archived from the original on September 12, 2017. Retrieved February 20, 2017.
  11. ↑ "Trak Auto to be acquired by HalArt". Milwaukee Business Journal . March 12, 1999. Archived from the original on February 9, 2006. Retrieved November 13, 2015.
  12. ↑ "Another piece of Dart to be sold". Washington Business Journal . March 12, 1999.
  13. ↑ "Hoover's Company Capsule: Restoration Auto Parts". The Industry Standard . Hoover's, Inc. 2001. Archived from the original on 2001-05-23.
  14. ↑ Clabaugh, Jeff (July 23, 2002). "Advance Auto picks up Trak Auto locations". Washington Business Journal . Archived from the original on February 3, 2015. Retrieved November 13, 2015.
  15. ↑ "Advance Auto Parts to Acquire Trak Auto Parts Stores in Washington, D.C., Northern Virginia, and Eastern Maryland Markets" (Press release). Advance Auto Parts. July 23, 2002. Archived from the original on July 14, 2012. Retrieved November 8, 2015.
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