Pep Boys Plummets 22% As Gores Group Pulls Bid, Stifel Issues Negative Comments

Pep Boys’ stock plummeted 22% after the decrease of a buyout deal with a Los Angeles-based private equity company.Pep Boys, which is based in Philadelphia and has 130 shops in California, announced on Tuesday that it plans to terminate its $1.1-billion buyout by The Gores Group.The automotive retail and repair chain said Gores would pay Pep Boys a $50-million termination fee. Pep Boys will also get reimbursed for certain merger expenses, according to a filing with the U.S. Securities and Exchange Commission.Gores agreed to buy Pep Boys and the $15 per share deal was announced January 30th. The private-equity firm seemed to be backing out earlier this month after Pep Boys announced disappointing earnings in the first-quarter.Pep Boys’ stock fell $2.41 a share, or 22%, to $8.68 in early trading on Wall Street.