"We are pleased to have completed this transaction, the proceeds of which, along with cash on hand, satisfied our synthetic lease purchase obligation," says Pep Boys CFO Ray Arthur in a company statement. "The transaction improved our liquidity by freeing up additional availability on our revolving credit facility and further demonstrates the underlying value of our remaining owned real estate.

This is the fourth sale-leaseback transaction the company has completed since the fourth quarter of 2007. In all, 97 properties have been sold for a total of $376.7 million. The company recently used proceeds from the transactions to purchase 27 store properties and two distribution centers for $116.3 million. The properties had been leased under a master operating lease scheduled to expire on Aug. 1, 2008.

Pep Boys, which operates more than 550 stores and five distribution centers in 36 states and Puerto Rico, saw significant declines in its earnings and common stock throughout 2006 and called on Goldman Sachs to evaluate strategic alternatives. In July of that year, company CEO Larry Stevenson resigned and was replaced by Jeffrey Rachor. The company began pursuing the sale leasebacks of certain properties and also closed 31 locations in 16 states in 2007.