37-year-old auto parts chain franchisee files for bankruptcy

Specialty auto parts retail chains are facing many of the same economic challenges as other mainstream retailers, including labor shortages, high costs driven by inflation, supply chain challenges, and declining consumer demand.

Despite statistics showing 1% increases in automotive auto parts retail sales and demand in the first half of 2025, according to market research firm Circana, Aftermarket Matters reported, specialty auto parts chains have been filing for bankruptcy this year

Specialty auto parts chain bankruptcies

Car audio retail chain Car Toys Inc. filed for Chapter 11 bankruptcy protection on Aug. 18, seeking to sell its assets to five different buyers in four states.

The debtor has faced financial difficulties for several years, as its car audio business, which represents 70% of the company's sales, has declined about 8% to 10% annually since 2020, according to a declaration by the debtor's Chief Restructuring Officer Philip Kaestle of Sierra Constellation Partners.

Techno Toy Tuning LLC, a provider of auto parts for classic and discontinued automobile models, filed for Chapter 11 bankruptcy on May 10, 2025, seeking to reorganize its business.

The debtor produces high-quality, durable, and aesthetically pleasing performance auto parts that are rigorously tested and have been successfully used in various motorsports, including Sports Car Club of America, National Auto Sport Association, and Formula Drift, according to its website.

The auto parts and accessories retail chain files for Chapter 11 bankruptcy.

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Batteries Plus franchisee files for bankruptcy protection

And now, Batteries Plus franchisee BP Retail Partners, Inc. filed for Chapter 11 bankruptcy to reorganize its business and restructure debt, which included closing two of its 12 franchise locations.

BP Retail Partners and three affiliates filed their petition in the U.S. Bankruptcy Court for the Middle District of Tennessee on Aug. 21, listing $1 million to $10 million in assets and liabilities.

Specialty auto parts retailer bankruptcies:

Techno Toy Tuning, Chapter 11, May 10, 2025.
Car Toys Inc., Chapter 11, Aug. 18, 2025
BP Retail Partners (Batteries Plus), Chapter 11, Aug. 21.

The Clinton, Iowa-based auto parts and electronics retail franchisee, which operates 10 Batteries Plus locations in Illinois, Iowa, and Texas, indicated that funds would be available for distribution to its unsecured creditors at the conclusion of the bankruptcy case.

Batteries Plus franchisee closed 2 locations

“Our team recently made the difficult decision to close two locations as part of a Chapter 11 restructuring,” BP Retail Partners CEO Corey Robinson said in an email statement to TheStreet.

“This step allows us to focus our resources on strengthening the performance of our remaining stores.

More bankruptcy:

“Our 10 stores across Illinois, Iowa, and Texas remain open and operating as usual, and our teams are committed to delivering the same level of expertise and service our customers expect,” Robinson said.

“We see this as an opportunity to position our business for long-term stability and growth,” said Robinson.

Batteries Plus says it's healthy and growing

The Batteries Plus corporation was quick to assert that the company is financially healthy and growing nationwide.

“We are aware that one of our valued franchise owners has made the difficult but necessary decision to file for bankruptcy,” the Hartland, Wis.-based company said in an email statement.

“This operator has been a strong and committed part of our brand for many years, and we are supportive during this challenging time,” according to the statement.

“It’s important to note that each location in our system is independently owned and operated. While this filing is specific to one franchisee, our brand overall remains healthy and continues to grow nationwide,” the statement asserted.

CEO Robinson named Franchisee of the Year

BP Retail Partners' bankruptcy filing comes over six months after the International Franchise Association named Robinson as 2024 Franchisee of the Year in February 2025.

Robinson became a Batteries Plus franchisee in 2022 with the purchase of four locations, and expanded to 12 locations in Iowa, Illinois, and Texas in less than two years.

Batteries Plus, established in 1988, is a major retailer of car and truck batteries, a supplier of light bulbs, including headlights, key fob replacement, marine, powersport, and golf cart batteries, generator batteries, and cell phone repairs.