If you’ve ever been to a tire store, you’ll know it’s quite the experience.
But it’s no longer just a fun way to buy new tires.
The company behind it is going to need some serious capital if it wants to get the business it started with going anywhere near profitability.
The Australian tire warehouse chain, The Tire Warehouse, is in talks to buy the entire industry.
In a statement on Thursday, The Warehouse said it was working with an unnamed buyer to acquire the industry.
“The warehouse is undergoing a strategic review to ensure that it will continue to thrive and meet its key objectives, and we will announce the terms of that strategic review shortly,” the statement said.
“We are in discussions with a potential buyer for the entire warehouse.
We are excited about the opportunity and are looking forward to welcoming this exciting new company to the Warehouse.”
The company has had a rough go of it over the past two years.
In 2015, the firm lost $5 million in revenue, or about 2 per cent of its total revenue.
Then in 2016, The Warehouses CEO, Chris Ruggles, was sacked by his company.
The firm was taken over by its new owner, Ruggens, who says he wants to do more for the industry in the coming years.
He says he’s looking to create an international network of independent warehouses that can be open 24 hours a day, 7 days a week, 365 days a year.
“I’m not a big fan of having all the warehouses closed down and the people laid off,” he said.
At the time, The Business Insider spoke to Ruggs about why he thought the warehouse business was in a bad place.
But now, The Wire says the company is preparing to cut about 50 jobs as it looks to raise $30 million to keep the business afloat.
The warehouse company has been working with the federal government to help it get the deal through, but The Warehouse says it’s not yet ready to say how much it’s looking at, but it’s going to be well over $30m.
The deal will be finalised by the end of February, The Telegraph reported.