View source for CSK Auto

{{Short description|Independent company acquired by O'Reilly Auto Parts}}
{{Infobox company
| name         = CSK Auto, Inc.
| logo         = CSK Auto Logo.jpg
| logo_alt     = CSK Auto's logo
| former_name  = Northern Automotive (1987–1993)
| trade_name   = {{plainlist|
* Checker
* Schuck's
* Kragen
* Murray's
}}
| foundation   = {{start date and age|1987}} as Northern Automotive
| defunct      = {{end date and age|2008|07|11}} (brands phased out and eliminated within 3 years of purchase)
| fate         = Acquired by [[O'Reilly Auto Parts]]
| location     = [[Phoenix, Arizona|Phoenix]], [[Arizona]], [[United States]]
| locations    = 1,349 (2008)<ref name="bloomberg-2008apr01" />
| area_served  = Western United States
| homepage     = {{webarchive |url=https://web.archive.org/web/20080727115314/http://www.cskauto.com |date=July 27, 2008 |title=Archive of CSK Auto corporate site }}
}}
'''CSK Auto, Inc.''' was a specialty [[retailer]] of [[automotive]] parts and accessories in the western [[United States]]. CSK Auto became a publicly traded company in March 1998, headquartered in [[Phoenix, Arizona]], and grew through a combination of acquisitions and organic growth. It was acquired in 2008 by [[O'Reilly Automotive]].<ref name=bloomberg-2008apr01 />
The company took its name from the initials of its three auto parts chains, Checker Auto Parts, Kragen Auto Parts, and Schuck's Auto Supply.<ref name=":0">{{Cite journal |date=August 5, 1996 |title=CSK Auto expects $100M from IPO |url=https://www.proquest.com/docview/228406346/ |access-date=2024-09-11 |journal=Discount Store News |language=en |publication-place=New York |volume=35 |issue=15 |id={{ProQuest|228406346}}}}</ref>
==Operations==
On January 29, 2006,{{clarify|date=September 2024|reason=Why is this date signification?}} CSK had operated 1,273 stores{{citation needed|date=September 2024}} in 22 states spanning from Hawaii to Ohio, with principal concentration of stores in the Western United States. CSK operated its stores under four brand names:
* '''Checker Auto Parts''', founded in 1969 in Phoenix, Arizona by Jacob Edward Henegar, with 442 stores{{citation needed|date=September 2024}} in the Southwestern, Rocky Mountain, and Northern Plains states and Hawaii.
* '''Schucks Auto Supply''', founded in 1917, with 226 stores{{citation needed|date=September 2024}} in the Pacific Northwest and Alaska.
* '''Kragen Auto Parts''', founded in 1947 by Al Kragen. Kragen Auto Parts had 493 stores,{{citation needed|date=September 2024}} primarily in California.
* '''Murray's Discount Auto Stores''', founded in 1972, with 112 stores{{citation needed|date=September 2024}} in the Upper Midwest.
In the mid-2000s, CSK operated five value concept retail stores under the Pay N Save brand name in and around Phoenix, Arizona.  These stores sold primarily tools, hardware, sporting goods, housewares and other household goods, and seasonal items. To try and increase the tool business CSK built six stores that combined both auto parts and tools in Michigan, Colorado, Washington, and Arizona.  The company ceased operations of the Pay N Save stores on August 26, 2007.
CSK sponsored major league baseball in major markets throughout its trade areas,<ref>{{cite press release |date=June 25, 2007 |work=Business Wire |title=CSK Auto Offers 'Ultimate Baseball Road Trip'. |via=[[The Free Library]] |url=http://www.thefreelibrary.com/CSK+Auto+Offers+%27Ultimate+Baseball+Road+Trip%27.-a0165624895 |author=<!--Staff writer(s); no by-line.-->}}</ref> the [[2Xtreme Racing]] [[monster truck]] team and the [[funny car]] driven by Del Worsham in the National Hot Rod Association. CSK was designated the Official Auto Parts Store of the NHRA.<ref>{{cite web |url=http://www.nhra.com/sponsors/index.htm |title=NHRA sponsors |archiveurl=https://web.archive.org/web/19990824165607/http://www.nhra.com/sponsors/index.htm |archivedate=1999-08-24 |accessdate=2012-01-28 |date=<!--undated--> |author=<!--Staff writer(s); no by-line.--> |work=[[National Hot Rod Association]]}}</ref><ref>{{cite web |url=http://www.nhra.com/sponsors/index.htm |title=NHRA sponsors |archiveurl=https://web.archive.org/web/20080515065215/http://nhra.com/sponsors/index.htm |archivedate=2008-05-15 |accessdate=2012-01-28 |date=<!--undated--> |author=<!--Staff writer(s); no by-line.--> |work=[[National Hot Rod Association]]}}</ref>
CSK served both the do-it-yourself ("DIY") and the commercial installer, or do-it-for-me ("DIFM"), customer. The DIY market, which comprises customers who typically repair and maintain vehicles themselves, was the foundation of the business. The DIFM market comprised auto repair professionals, fleet owners, governments and municipalities.
==History==
CSK Auto was formed after a series of acquisitions in the auto parts space.
In October 1971, Lucky Stores acquired Kragen Auto Supply with its 11 stores in a stock swap.<ref>{{cite news |title=Lucky Stores Acquisition Accord |newspaper=[[Wall Street Journal]] |date=October 27, 1971 |page=14 |id={{ProQuest|133556307}}}}</ref> Lucky also acquired Checker Auto Parts when it acquired [[Yellow Front Stores]] along with their corporate parent Valley Distributing for $45.9 million in stock in March 1978.<ref name=wsj-1978mar31>{{cite news |title=Lucky Stores, Valley Distributing Agree On Merger Proposal |newspaper=[[Wall Street Journal]] |date=March 31, 1978 |page=36 |author=<!--Staff writer(s); no by-line.--> |id={{ProQuest|134360071}}}}</ref>
In December 1983, the [[Pay 'n Save]] discount retail chain acquired Schuck's Auto Supply with its 58 stores.<ref>{{Cite news |date=December 8, 1983 |title=Pay'n Save Bid |url=https://www.nytimes.com/1983/12/08/business/pay-n-save-bid.html |access-date=September 11, 2024 |newspaper=[[The New York Times]]}}</ref> The merger was finalized on January 1, 1984,<ref>{{Cite news |date=December 27, 1983 |title=Schuck's Head Bullish On Pay 'n Save Merger |url=https://www.nytimes.com/1983/12/27/business/business-people-schuck-s-head-bullish-pay-n-save-merger-stuart-m-sloan-his.html |access-date=September 11, 2024 |newspaper=[[The New York Times]] |id={{ProQuest|424849597}}}}</ref> for $68.9 million in stock.<ref>{{cite news |title=Pay 'n Save Corp. Acquires Schuck's Auto Supply Inc. |newspaper=[[Wall Street Journal]] |date=January 30, 1984 |page=12 |id={{ProQuest|135004986}}}}</ref> In September, Eddie and Julius Trump of [[The Trump Group]] (no relations to [[Donald Trump]] or [[The Trump Organization]]<ref>{{Cite web |date=September 13, 1984 |title=Bid Withdrawn For Pay'n Save |url=https://www.nytimes.com/1984/09/13/business/bid-withdrawn-for-pay-n-save.html |access-date=September 11, 2024 |website=The New York Times}}</ref>) took control of the company.<ref>{{Cite web |date=September 14, 1984 |title=Trump Group Lifts Pay'n Save Bid |url=https://www.nytimes.com/1984/09/14/business/trump-group-lifts-pay-n-save-bid.html |access-date=September 11, 2024 |website=The New York Times}}</ref> The following year, Pay 'n Save began to divest its non-core businesses. In November 1985, Pay 'n Save spun off [[Bi-Mart]], [[Lamonts]], and Schuck's to form a new company, Northern Pacific Corporation.<ref>{{cite news |title=Pay 'n Save divisions spun off |newspaper=[[Seattle Times]] |date=November 1, 1985 |page=D7 |id={{ProQuest|385148401}}}}</ref>
In early December 1986, [[Lucky Stores]] announced it was selling its Checker Auto Parts and Kragen Auto Parts subsidiaries to the Northern Pacific Corporation, which also operated Schuck's, for $155 million. The combined entity operated 95 Schuck's stores in Oregon, Washington and Idaho, 175 Kragen stores in California and Nevada, and 202 Checker stores across 12 Western states.<ref>{{Cite news |date=December 2, 1986 |title=Lucky to Sell Car Parts Unit |url=https://www.nytimes.com/1986/12/02/business/lucky-to-sell-car-parts-unit.html |access-date=September 11, 2024 |newspaper=[[The New York Times]]}}</ref> After the acquisition, the automotive division was briefly known as Checker/Schuck's/Kragen before becoming Northern Automotive.<ref name=":1" /> The transaction was completed withn three weeks of the announcement.<ref>{{Cite news |title=Lucky Stores Inc. Sells Gemco, Checker Units For $595 Million |newspaper=[[Wall Street Journal]] |date=December 24, 1986 |page=1 |id={{ProQuest|397986796}}}}</ref>
In February 1988, Northern Automotive acquired 252 [[Auto Works]] stores in Michigan, Illinois, Indiana, Wisconsin, Kentucky, Missouri and West Virginia from [[Perry Drug Stores]]. The deal also included an automated distribution center in Dayton, Ohio that would be used to expand the Schuck's brand into Kansas City, Missouri.<ref name=":1">{{Cite web |last=Halverson |first=Richard C. |date=February 15, 1988 |title=Schuck's Group buys Auto Works - Northern Automotive, formerly Checker-Schuck's-Kragen |url=http://findarticles.com/p/articles/mi_m3092/is_n4_v27/ai_6352605 |archive-url=https://web.archive.org/web/20050518060345/http://findarticles.com/p/articles/mi_m3092/is_n4_v27/ai_6352605 |archive-date=May 18, 2005 |access-date=September 11, 2024 |website=Discount Store News}}</ref> Northern Automotive later sold off the Auto Works chain with its 159 retail stores in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and West Virginia to Hahn Automotive Warehouse in November 1993 for $13 million in cash.<ref>{{cite news |title=Business Brief -- Hahn Automotive Warehouse Inc.: Auto Works to Be Acquired From Northern Retail Corp. |newspaper=[[Wall Street Journal]] |date=November 1, 1993 |id={{ProQuest|395224619}}}}</ref><ref>{{cite report |url=http://edgar.secdatabase.com/2319/88878197000005/filing-main.htm |title=Hahn Automotive Warehouse 10Q |date=December 31, 1996 |work=[[U.S. Securities and Exchange Commission]]}}</ref>
In October 1996, [[Investcorp]] acquired a controlling interest in CSK Auto (formerly Northern Automotive)<ref>{{Cite news |date=October 9, 1996 |title=INVESTCORP AGREES TO BUY 51% OF CSK AUTO |url=https://www.nytimes.com/1996/10/09/business/investcorp-agrees-to-buy-51-of-csk-auto.html |access-date=September 10, 2024 |newspaper=[[The New York Times]] |id={{ProQuest|2237546491}}}}</ref> after CSK failed to first go public in July 1996.<ref>{{cite news |title=CSK Auto expects $100M from IPO |journal=Discount Store News |date=August 5, 1996 |volume=35 |issue=15 |page=6 |id={{ProQuest|228406346}}}}</ref><ref>{{cite news |title=Specialty watch; CSK Auto aborts plan to go public |journal=Discount Store News |date=October 21, 1996 |volume=35 |issue=20 |page=6 |id={{ProQuest|228411374}}}}</ref> CSK announced in December 1997 that it had filed with the SEC to go public through an [[initial public offering]].<ref>{{Cite news |date=1997-12-31 |title=Auto Parts Seller CSK Plans Stock Offering |url=https://www.latimes.com/archives/la-xpm-1997-dec-31-fi-3626-story.html |access-date=2024-09-11 |newspaper=[[Los Angeles Times]] |url-access=subscription}}</ref> The stock debuted in March 1998.<ref>{{Cite news |last=Chervitz |first=Darren |date=March 12, 1998 |title=IPO Daily Report: CSK Auto rises 18% in debut |url=https://www.marketwatch.com/story/ipo-daily-report-csk-auto-rises-18-in-debut |access-date=September 11, 2024 |work=[[Market Watch]]}}</ref>
CSK Auto experienced growth through a combination of acquisitions and a program of store construction and expansion.<ref name="catbsc">{{cite news |url=https://news.google.com/newspapers?id=gLcSAAAAIBAJ&sjid=1fkDAAAAIBAJ&pg=6942%2C255080 |newspaper=[[Spokane Chronicle]] |location=(Washington) |agency=Associated Press |title=Checker Auto to be bought by Schuck's |date=December 2, 1986 |page=A13 |via=[[Google News Archive]]}}</ref> In 1997, CSK acquired 81 [[Trak Auto]] stores in Southern California, converting them to the Kragen name and product mix.<ref name="lat-1997oct08">{{cite news |url=https://www.latimes.com/archives/la-xpm-1997-oct-08-fi-40384-story.html |title=Trak Auto to Sell 80 California Stores |newspaper=[[Los Angeles Times]] |date=October 8, 1997 |url-access=subscription}}</ref><ref name="pbj-1997dec10">{{cite news |url=http://www.bizjournals.com/phoenix/stories/1997/12/08/daily5.html |title=CSK buys Trak Auto's So. Calif. stores |newspaper=[[Phoenix Business Journal]] |date=December 10, 1997}}</ref> This led to an extremely productive year in 1998, as annual sales broke the $1 (~${{Format price|{{Inflation|index=US-GDP|value=1|start_year=1998}}}} in {{Inflation/year|US-GDP}})-billion barrier for the first time, and the company opened, expanded, or relocated a total of 130 more stores.
In June 1999, CSK acquired 86 Big Wheel/Rossi Auto Parts stores in Minnesota, North Dakota, and Wisconsin.<ref>{{Cite news |date=July 1, 1999 |title=CSK Auto Corporation Completes Acquisition of Big Wheel/Rossi Auto Parts Stores |url=https://www.theautochannel.com/news/press/date/19990630/press025951.html |access-date=2024-09-11 |work=[[The Auto Channel]]}}</ref> By August, CSK Auto operated 926 stores in 17 states under the Checker, Schuck's, Kragen and Big Wheel/Rossi names.<ref>{{Cite news |date=August 24, 1999 |title=COMPANY NEWS; CSK AUTO TO BUY PACCAR'S PARTS SUBSIDIARY |url=https://www.nytimes.com/1999/08/24/business/company-news-csk-auto-to-buy-paccar-s-parts-subsidiary.html |access-date=September 10, 2024 |newspaper=[[The New York Times]]}}</ref> In October, CSK completed its acquisition of 194 Al's and Grand Auto Supply stores in Washington, California, Idaho, Oregon, Nevada, and Alaska.<ref name="nyt1999aug24">{{cite news |url=https://www.nytimes.com/1999/08/24/business/company-news-csk-auto-to-buy-paccar-s-parts-subsidiary.html |title=CSK Auto To Buy Paccar's Parts Subsidiary |newspaper=[[The New York Times]] |date=August 24, 1999 |author=<!--Staff writer(s); no by-line.-->}}</ref><ref name="ac1999aug23">{{cite news |url=http://www.theautochannel.com/news/press/date/19990823/press028686.html |title=CSK Auto Corporation to Acquire Grand Auto Supply and Al's Auto Supply |website=[[The Auto Channel]] |date=August 23, 1999 |author=<!--Staff writer(s); no by-line.-->}}</ref><ref name="st1999aug23">{{cite news |last=Lane |first=Polly |date=August 23, 1999 |title=Eastside Business -- Paccar To Sell Auto-Parts Unit, Focus On Trucks |url=https://archive.seattletimes.com/archive/19990823/2978949/eastside-business |archive-url=https://web.archive.org/web/20131104212250/http://community.seattletimes.nwsource.com/archive/?date=19990823&slug=2978949 |archive-date=November 4, 2013 |url-status=live |newspaper=[[The Seattle Times]]}}</ref>
In January 2000, and [[Advance Auto Parts]] announced a partnership to launch PartsAmerica.com, an automotive parts and accessories e-commerce platform that served all 50 states.<ref>{{Cite news |last= |first= |date=2000-01-09 |title=CSK Auto and Advance Auto Parts Partner With Sequoia Capital |url=https://www.techmonitor.ai/technology/csk_auto_and_advance_auto_parts_partner_with_sequoia_capital |access-date=2024-09-11 |work=[[Tech Monitor]] |language=en-US}}</ref> To strengthen its position in the Northern Plains states, in April, CSK purchased All-Car Distributors, operators of 21 stores in Wisconsin and one in Michigan.<ref name="ac-2000mar13">{{cite news |url=http://www.theautochannel.com/news/press/date/20000313/press010162.html |title=CSK Auto Corporation to Acquire All-Car Distributors, Inc. |website=[[The Auto Channel]] |date=March 13, 2000 |author=<!--Staff writer(s); no by-line.-->}}</ref><ref>{{Cite press release |date=March 13, 2000 |title=CSK Auto Corporation to Acquire All-Car - ProQuest |url=https://www.proquest.com/docview/449390401/ |access-date=2024-09-11 |publisher=CSK Auto Corporation |via=[[PR Newswire]] |id={{ProQuest|449390401}}}}</ref> These stores operated under the Checker banner.
In December 2005, CSK acquired Murray's, Inc. and its subsidiary, Murray's Discount Auto Stores. The 110 Murray's automotive-part and accessory retail stores in Michigan, Illinois, Ohio, and Indiana retained the Murray's name and operating model.<ref>{{Cite news |date=December 20, 2005 |title=CSK Auto Corp. Completes Purchase of Murray's Discount Auto Stores |url=https://www.aftermarketnews.com/csk-auto-corp-completes-purchase-of-murray-s-discount-auto-stores/ |access-date=September 11, 2024 |website=Aftermarket News}}</ref>
In September 2006, CSK announced it had dismissed its chief operating officer and its chief administrative officer, and chief executive Maynard Jenkins would retire, following an investigation that found irregularities in the company's accounting practices.<ref>{{Cite web |date=September 29, 2006 |title=Car Parts Maker Fires Officers After Inquiry |url=https://www.nytimes.com/2006/09/29/business/29parts.html |access-date=September 11, 2024 |website=The New York Times}}</ref> On March 5, 2009 the SEC filed a civil injunction against four former executives of CSK Auto. The employees were charged with accounting fraud for the years of 2002, 2003, and 2004.<ref>{{cite web |author=<!--Staff writer(s); no by-line.--> |date=March 6, 2009 |title=Martin G. Fraser, Don W. Watson, Edward W. O'Brien, and Gary M. Opper: Lit. Rel. No. 20933A / March 6, 2009 |url=https://www.sec.gov/litigation/litreleases/2009/lr20933a.htm |accessdate=2012-01-28 |publisher=Securities and Exchange Commission}}</ref><ref>{{cite web |author=<!--Staff writer(s); no by-line.--> |date=July 22, 2009 |title=Complaint for Violations for of Section 304 of the Sarbanes-Oxley Act of 2002 - Case 2:09-cv-01510-JWS / July 22, 2009 |url=https://www.sec.gov/litigation/complaints/2009/comp21149.pdf |accessdate=2012-01-28 |publisher=Securities and Exchange Commission}}</ref> In November 2011, Jenkins was ordered to give back $2.8 million in bonus and stock profits.<ref>{{Cite web |last=Protess |first=Ben |date=2011-11-15 |title=S.E.C. Claws Back $2.8 Million From CSK Executive |url=https://archive.nytimes.com/dealbook.nytimes.com/2011/11/15/s-e-c-claws-back-2-8-million-from-csk-executive/ |access-date=2024-09-11 |website=DealBook |language=en}}</ref>
On April 1, 2008, [[O'Reilly Auto Parts|O’Reilly Automotive, Inc.]] signed a deal to acquire all of CSK's common stock for approximately one billion dollars, including $500 million (~${{Format price|{{Inflation|index=US-GDP|value=500000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) of debt. At the time of the announcement, CSK had a total of 1,349 stores in 22 states operating under the brand names Checker Auto Parts, Schuck's Auto Supply, Kragen Auto Parts, and Murray's Discount Auto Stores.<ref name="bloomberg-2008apr01">{{cite news|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_IJeAXlrgy0|title=O'Reilly Automotive to Buy CSK Auto for $528 Million|last=Fineman|first=Josh|date=April 1, 2008|archive-url=https://archive.today/20141126042913/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_IJeAXlrgy0|archive-date=November 26, 2014|website=[[Bloomberg L.P.|Bloomberg]]|url-status=dead}}</ref> The acquisition was finalize on July 11, 2008.<ref>{{cite news |url=https://chainstoreage.com/news/oreilly-auto-completes-exchange-offer-csk-auto |title=O'Reilly Auto completes exchange offer for CSK Auto |date=July 11, 2008 |work=Chain Store Age}}</ref><ref>{{cite news |url=https://www.aftermarketnews.com/o-reilly-acquires-more-than-90-percent-of-csk-common-stock-short-form-merger-to-follow/ |title=O'Reilly Acquires More Than 90 Percent of CSK Common Stock; Short Form Merger to Follow |date=July 14, 2008 |work=Aftermarket News}}</ref> Starting in 2009, O'Reilly gradually rebranded Checker Auto Parts, Schucks Auto Supply, and Kragen Auto Parts stores as O'Reilly Auto Parts stores during a multi-year process that was finally completed in 2011.<ref name=fool-2011apr29>{{cite news |url=http://www.fool.com/investing/general/2011/04/29/can-oreilly-keep-its-growth-up.aspx |title=Can O'Reilly Keep Its Growth Up? |newspaper=[[The Motley Fool]] |date=April 29, 2011 |first=Andrew |last=Bond}}</ref>
==References==
{{reflist|colwidth=30em}}
== External links ==
{{Portal|Arizona|Companies}}
*[http://www.oreillyauto.com/site/c/home.oap O'Reilly Auto Parts]
*{{webarchive |url=https://web.archive.org/web/20080727115314/http://www.cskauto.com |date=July 27, 2008 |title=CSK Auto corporate site }}
{{DEFAULTSORT:CSK Auto}}
[[Category:Automotive part retailers of the United States]]
[[Category:Companies based in Phoenix, Arizona]]
[[Category:Defunct retail companies of the United States]]
[[Category:Pay 'n Save]]
[[Category:Retail companies disestablished in 2008]]