Goodyear to Close 92 U.S. Retail Outlets
Goodyear Tire & Rubber Co. plans to close 92 retail stores with about 500 full-time workers by the end of the year because of their lack of profitability, Bloomberg reported.
The move by the biggest U.S. tire maker affects about 11% of Goodyear outlets in North America and will result in charges of about $30 million, half of which will be recorded in the third quarter, Bloomberg said.
The stores, which all company owned, had combined annual losses of about $9 million, Goodyear said.
Goodyear posted a 34% increase in second-quarter profit by selling higher-priced tires as demand in North America declined, Bloomberg said.
The company said it would not identify the stores until employees were notified. The 92 U.S. retailers also have about 100 part-time employees, Goodyear said.
Some of the stores may stay open under different ownership, spokesman Keith Price said. At the end of last year, Goodyear had 815 stores in North America, according to its annual report.
