Heartland Automotive News

As someone commented below, we’ve just learned that Heartland Automotive Services, the big Jiffy Lube franchisee with 400-plus facilities that filed bankruptcy back in January, has petitioned the bankruptcy court to allow Heartland to void its contract with Jiffy Lube International and sign an agreement to re-brand its stores as Castrol Premium Lube Express facilities. The hearing on that petition is scheduled for Oct. 10.

If the bankruptcy court allows such a move, it would be an obvious boon for Castrol’s fledgling signage program and a pretty big hit to Jiffy Lube International, which would see its Jiffy Lube network drop to 1,800 facilities from 2,200. You can read more about the petition, including downloading the actual petition itself, here. (Look at docket #770, specifically.)

About National Oil & Lube News

National Oil & Lube News is the fast oil change industry's oldest and largest trade publication. Started in 1986 by Steve Hurt (a former fast lube owner) and David Arrington, NOLN has grown and evolved right alongside the fast lube industry. Here at NOLN, our aim is to help fast lube operators with every facet of their business, from operations to technical issues. Our monthly magazine and this regularly updated website contain everything from technical tips, recall announcements and service guides to articles on handling customer complaints, building your brand and making your business the best it can be. With tips and advice from experts both inside and outside the industry, you're sure to learn something that can help your fast lube business grow and prosper.
This entry was posted in Uncategorized. Bookmark the permalink.

3 Responses to Heartland Automotive News

  1. Anonymous says:

    Just an observation here. This is a great deal for Castrol, as they catapult their premium oil change chain by over 400 stores in one transaction, and gain 6 million gallons of motor oil sales per year. On Heartland’s side, if they can exit the burdensome Jiffy Lube organization that wants to break them up, they can begin nationwide expansion with Castrol’s assistance.Will Shell allow this – I doubt it – at least not without a huge fight. Of all of the oil companies solicited to be suppliers in the post bankruptcy of Heartland, only Pennzoil did not submit a bid – apparently because they do not believe Heartland can gain independence anyway, and they plan to fight to break up the 400 store chain.Current Jiffy Lube franchisees should watch this one – as it could open the floodgates for all unhappy Jiffy Lube franchisees to exit the chain.There are still many issues that will have to be overcome by Heartland – including non-compete issues and other damage issues to Shell and Jiffy Lube. Stay Tuned!

  2. Anonymous says:

    There is no way JLI/Shell Oil company will walk away without a fight. The fear here is what this group has done to the entire industry. I am very suprised the rest of the franchisees have not filed suit against Heartland. How many times do this folks have to get caught doing the wrong thing before the AG steps in and lay’s heavy fines and stronger regulations on the industry?

  3. Anonymous says:

    It’s interesting that Heartland is choosing to reject the JLI contracts. What’s more interesting is BP/Castrol’s willingness to take on such a troubled organization. Certainly, where Heartland is today, is purely their own fault. Looks like Castrol’s program might not be quite so “Premium” afterall.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s