An Indiana franchisee of Tuffy Tire & Auto Service has filed for Chapter 11 bankruptcy protection amid ongoing financial pressure across parts of the U.S. tire and automotive repair industry. Automotive Solutions Inc., which operates two Fort Wayne locations, filed on July 7 after reporting more than $2 million in liabilities and just over $1.1 million in assets.
Both service centers remain open while the company reorganizes under court supervision. The filing comes as U.S. tire shipments declined slightly in 2025 and follows several restructurings across the tire sector, highlighting ongoing financial challenges despite forecasts calling for a modest recovery in industry demand during 2026.
Automotive Solutions seeks court protection while keeping stores open
Automotive Solutions Inc. filed its Chapter 11 petition in the U.S. Bankruptcy Court for the Northern District of Indiana. The case is assigned to Judge Robert E. Grant and will proceed under federal bankruptcy rules that allow businesses to reorganize rather than immediately shut down. Chapter 11 is commonly used by companies seeking time to stabilize operations while working with creditors to restructure their financial obligations.
According to court filings, the company reported assets of more than $1.1 million and liabilities of more than $2 million. The petition also categorizes both assets and liabilities within the $1 million to $10 million range, a standard reporting format used in bankruptcy filings. Those figures indicate the company currently owes substantially more than the value of its reported assets…