Tyre distributor and retailer Tyrecorp in receivership as manufacturers turn the screws

Tyre distributor and retailer Tyrecorp has been placed in receivership and will be put up for sale as industry observers say margins are continuing to shrink in the automotive retail sector.

Melbourne-based Tyrecorp has 40 retail stores across Victoria, New South Wales, South Australia and Western Australia, comprising 33 franchised stores, four company-managed stores and three licensed stores.

The appointment of PPB Advisory took place last week, and expressions of interest for the potential sales of the business are due on October 28.

James McCall of the Motor Traders’ Association of New South Wales says there’s no information to support a sharp downturn in people putting off tyre repairs and purchases, and he’s not heard complaints from members this is the case.

Instead, McCall says the difficulty in the tyre industry is the power imbalance between retailers and manufacturers, particularly for retailers who have spent years linking themselves to certain brands.

“Manufacturers dealing with retailers are very, very hard, and crush them to the ground,” he says.

McCalls adds that while it would seem logical that the higher Australian dollar would benefit importers, any benefits would be industry-wide rather than company-specific.

Tyrecorp describes itself as a “one stop shop for wheels and tyres ‘where service counts’.”

“Tyrecorp is the fastest growing and most progressive tyre and wheel wholesaler in Australia with the vision of becoming the number one independent tyre and wheel wholesaler nationwide,” it says on its website.

More detail was sought from PPB Advisory on the business and its sales process, but the information was not available before deadline.