Uni-Select closing locations, eliminating 600 jobs in U.S. restructuring

Jan. 1, 2020
  Uni-Select Inc. is restructuring its U.S. operations by eliminating approximately 600 jobs and closing 48 stores and several distribution centers.

Uni-Select Inc. is restructuring its U.S. operations by eliminating approximately 600 jobs and closing 48 stores and several distribution centers.

Over the past 10 years, Uni-Select has expanded by completing more than 70 acquisitions. It allowed the corporation to increase its activities, improve its product offering, enhance its geographical presence and strengthen its operations. However, Uni-Select said its network needs to be optimized to eliminate redundancy.

The company’s Action Plan is the result of a comprehensive review of Uni-Select’s distribution operations. The adopted strategy will allow Uni-Select to improve efficiency and profitability by increasing its focus on markets with growth opportunities and exit areas with less potential, the company said. The Action Plan encompasses a major optimization of the U.S. distribution network and includes a number of operational improvements that are expected to improve profitability.

Highlights of the Action Plan

  • Store Closures


• Closures, divestitures or consolidations involving 48 stores to exit areas with less potential.

  • Rightsizing of the distribution network

• Optimization of distribution network with focus on select large distribution centers.

• Closure of 12 distribution centers.

• Opening of two regional distribution centers.

  • Operational Improvements


• Investment of $8 million in a dozen distribution centers to improve efficiency.

• Process improvements focused on increasing fill rates and enhancing pricing strategy.

• Headcount reductions.

• Expense reductions.

  • Estimated cost savings of approximately $30 million on an annual run-rate basis.


• Approximately $10 million in 2013, an additional $15 million in 2014 and full impact in 2015.

  • Reduction in sales of approximately $70 million, on an annual basis, resulting from store closures and warehouse relocations.
  • Restructuring charges, write-off of assets and other actions related to the Action Plan will result in an approximate one-time cost of $45 million. 


• Restructuring charges of approximately $36 million to be recorded in the second quarter of 2013. The balance will be recorded as incurred.

• These charges will result in a cash outlay of $13 million that will be fully offset by a $40 million reduction in inventory.

Implementation of the Action Plan is in progress and completion is expected in late 2014.

Progress of the action plan to date

1. Closure of 11 stores and one distribution center resulting in an headcount reduction of 58 people.

2. Completion of the relocation of U.S. national distribution center.


3. Restructuring of operations leading to the elimination of 156 positions.

During the last few weeks the corporation reduced its expenses through these initiatives by approximately $10 million, on an annual basis, of which $5 million will positively affect 2013 results.

Uni-Select is also committed to close 30 stores, another distribution center and open a new regional distribution center in the third quarter of 2013.

The Action Plan is in addition to the Network Optimization Plan launched in August 2012 (rationalization and consolidation of distribution network). The annual savings of $20 million expected from the Network Optimization Plan have been realized; but, the cost reduction stemming from the Network Optimization Plan were largely offset by lower sales in the past three quarters as well as the unfavorable change in the distribution channel mix. These offsetting elements led Uni-Select to implement additional initiatives to improve results.

“With the support of our strong and dedicated team and the help of our advisors, we were able to assess our operations and assets, as well as our potential for growth. We have concluded that the Action Plan is the best alternative to create additional value for our shareholders and offer continued excellent service to our customers.” said Richard G. Roy, President and Chief Executive Officer, Uni-Select.

“As we implement these initiatives, we still intend to achieve previously stated goals such as the reduction of indebtedness and carry-out our sales strategy to diversify our market, increase market share and execute accretive acquisitions. FinishMaster and Beck/Arnley are delivering good results on which we plan to capitalize. We are focussed and convinced that we will be able to deliver on expectations and generate beneficial value to all stakeholders. Our search for a new President and COO for our U.S. automotive business is progressing according to our plan and we shortly should be able to make an announcement,” added Roy.

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