Major tire and auto repair franchisee files Chapter 11 bankruptcy

Economic problems in the tire and auto repair chain industry have continued from 2025 into 2026, as a retail franchisee of Tuffy Tire & Auto Service has filed for bankruptcy in Indiana.

Troubled Tuffy Tire & Auto Service franchisee Automotive Solutions Inc. filed for Chapter 11 bankruptcy on July 7 in the U.S. Bankruptcy Court for the Northern District of Indiana, listing $1 million to $10 million in assets and liabilities, according to Bankruptcy Observer.

The debtor’s petition listed over $1.1 million worth of property and over $2 million in debts.

The Fort Wayne, Ind., debtor’s largest creditors include Newtek Small Business Finance, owed over $1.4 million in debt; U.S. Small Business Administration, owed over $515,000 in debt; Snap On Credit LLC, owed over $31,000 in debt; and Allen County Treasurer, owed over $29,000, according to court papers.

Franchisee operates Indiana locations

Automotive Solutions, which is owned by the company’s president Kenneth W. Smith, operates two Tuffy Fort Wayne locations at 1910 W. Dupont Road and 4028 Coldwater Road, according to its webpages. The store locations are continuing to operate as normal.

The tire and auto repair operator did not state a reason for filing for bankruptcy. The debtor was not immediately available for comment.

Toledo, Ohio-based Tuffy Tire & Auto Service launched in 1970 as Tuffy Muffler in Detroit and currently operates 118 franchise locations in 14 Midwest and Southeast states.

Tuffy Tire & Auto Service franchisee filed for Chapter 11 bankruptcy protection.

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Shipments declined in 2025

Tire retail chains saw a decline in business in 2025, as total U.S. tire shipments declined from 337.3 million units in 2024 to 336.3 million units in 2025, according to data from the U.S. Tire Manufacturers Association.

Tire shipments had risen slightly over the previous six years from 332.7 million units in 2019, until the 2025 decline.

The Manufacturers Association did not give any reasons for the decline in shipments in its February 2026 forecast, which predicted an increase in tire shipments for 2026 to 338.6 million units.

Spokespersons from the U.S. Tire Manufacturers Association were not immediately available for comment.

Chain closes 145 stores

Major tire services and repair chain Monro Inc. closed 145 underperforming stores in its first quarter of 2026, which began March 30, 2025, as part of its company improvement plan, after reporting a 4.9% decrease in sales in the 2025 fiscal year.

The company did not reveal the number of employees who were terminated.

After the first quarter store closings, Monro had 1,115 company operated stores and 48 franchise locations, according to the statement.

“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,” Monro CEO Peter Fitzsimmons said in the May 2025 statement.

Tire company bankruptcies

In 2024, two huge tire distributors had serious economic issues as Wheel Pros, which operates as auto parts distributor and retailer Hoonigan, filed for a prepackaged Chapter 11 bankruptcy on Sept. 9, 2024, that would eliminate $1.2 billion in debt and provide about $570 million in new capital through an exit facility.

Also, giant tire and wheel replacement company American Tire Distributors on Oct. 22, 2024, filed for Chapter 11 bankruptcy protection, seeking a sale of its assets, burdened with over $1.9 billion in funded debt.