September 4, 2012 / 9:56 PM / 5 years ago

Pep Boys profit rises; names new CFO

(Reuters) - Auto parts retailer and repair service company Pep Boys-Manny Moe & Jack PBY.N reported a higher second-quarter profit and named David Stern as its new finance chief.

The company also said it would begin a debt refinancing in the coming weeks to reduce long-term debt by $100 million and extend maturities.

Stern replaces Ray Arthur, who left the company in June.

Stern was previously the CFO at A.C. Moore Arts and Crafts.

Los Angeles-based private equity firm Gores Group walked away from a $791 million deal to buy Pep Boys in May, citing serious deterioration in the company’s business and a breach of covenant under the merger agreement.

Pep Boys’ net income rose to $33 million, or 61 cents per share, for the quarter ended July 28, from $13.9 million, or 26 cents per share, a year earlier.

Revenue increased marginally to $525.7 million.

Shares of the Philadelphia, Pennsylvania-based company were up 2 percent at $9.17 after the bell. They closed at $8.99 on the New York Stock Exchange on Tuesday.

Reporting by Mridhula Raghavan in Bangalore; Editing by Maju Samuel

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