A year after launching a major digital commerce platform, a leading tire distributor is now facing bankruptcy.

In October 2023, American Tire Distributors (ATD) introduced Radius, a digital hub designed to streamline the automotive aftermarket by integrating tires, parts, services, and solutions into one seamless platform.

Radius includes features such as:

• Data-driven tools to optimize operations and minimize obsolete inventory.
• Comprehensive programs offering warranties, discounts, training, and growth incentives for automotive and business retailers.
• A learning platform providing training for owners, managers, sales staff, and technicians.
• A proven sales model to help tire dealers boost online sales, attract foot traffic, and capture nationwide customers.
• Access to rebates, discounts, and loyalty rewards.
• B2B2C ecommerce and back-office tools, including product catalogs, real-time pricing, and booking for tire installations.
• Digital marketing tools to help shops automate customer engagement with features like personalized campaigns, appointment reminders, and customer reviews.

“The industry takes another step forward towards a more integrated, data-driven future,” said Stuart Schuette, the president and CEO of ATD at the time.

Despite the ambitious launch of Radius, ATD filed for bankruptcy just one year later.

As one of the largest independent tire suppliers in the U.S. replacement tire market, American Tire operates more than 115 distribution centers and serves approximately 80,000 customers nationwide. However, the Huntersville, North Carolina-based company entered bankruptcy with $1.9 billion in debt and only $30 million in cash. The company’s liquidity challenges left it vulnerable to the post-pandemic volatility of the tire and auto parts market, according to court filings in Delaware.

ATD’s financial difficulties were exacerbated by the COVID-19 pandemic. After a brief surge in profits in 2021, driven by increased consumer spending on used cars and replacement tires, the company overextended itself with costly investments in software and online retail platforms like Tirebuyer.com, according to Reuters.

“For nearly 90 years, ATD has continuously evolved to meet the dynamic shifts and challenges facing the automotive aftermarket. Today, we are taking further steps to position ATD for the future as a stronger distribution partner, returning to our roots as a wholesale distributor,” said Michael Feder, interim CEO.