McCoy sells struggling Alberta parts stores to UAP
EDMONTON (Sept. 4, 2000) — McCoy Bros. has sold its struggling parts divisions in Edmonton, Red Deer, and Calgary to Montreal-based UAP Napa.
The sale, for undisclosed terms, resulted in the termination of 130 jobs at the Edmonton-based parts distributor and manufacturer, although about 40 jobs will be saved through transfers to other positions with McCoy or UAP. Most of the layoffs were in Edmonton.
As part of the deal, UAP will no longer offer truck service in those cities. McCoy will maintain parts sales at its International truck dealerships in Grande Prairie and Prince Albert, Sask. Its Lethbridge operations will also grow as UAP pulls out of that city.
McCoy Bros. has been in business since 1914 and completed an initial public offering in 1997. McCoy will take a $2.6-million one-time hit in the third quarter for severance and writedowns on parts-related computer systems. McCoy has also arranged a $3-million short-term financing package from its major shareholder, Foundation Equity Corp., to help it through restructuring.
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