The pending $6 billion sale of Mavis Tire Express Services Corp. may have iced $2.4 million in payments for snow removal services at tire stores, according to a lawsuit.
Mavis “unilaterally ceased payment at or about the time Mavis announced that it was selling the company to a private equity group,” Nest International Inc., Gloucester City, New Jersey, claims in an April 14 complaint filed in U.S. District Court, White Plains.
A Mavis spokeswoman did not give the company”™ side of the story in response to an email request.
Mavis hired Nest International last year to provide snow and ice removal, janitorial services and landscaping from Oct. 15 through April 2021. The contract covered more than 300 stores in Connecticut, New Hampshire, New Jersey, New York, Massachusetts and Pennsylvania.
But since Feb. 19, the lawsuit states, Mavis has refused to pay 2,205 invoices, totaling $2,423,517.
Nest said Mavis claimed it was entitled to withhold fees because of service failures. But Nest alleges that Mavis had not previously disputed the services and it has not identified specific failures.
Nest is demanding $2.4 million, citing breach of contract and state prompt payment laws.
Mavis announced on March 5 that it would be acquired by BayPine LP of Boston and TSG Consumer Partners LP of San Francisco. Mavis”™ financial partner, Golden Gate Capital of San Francisco will retain a minority interest.
Reuters news service put the price at $6 billion, including debt.
Mavis traces its history to 1949 and Vic”™s Cycle Shop, a small bicycle repair shop in Millwood. One thing led to another, as customers asked the shop to patch flat tires on cars and Vic the Tire King was formed in 1965.
Mavis Tire Supply Corp. was formed in 1972, taking its name from the first letters in the founders”™ names: MArion and VIctor Sorbaro.
Mavis has acquired several related businesses in the past 33 years, including Cole Muffler Brake, Somerset Tire, Kauffman Tire, and Express Oil and Tire Engineers.
The tire shop has grown from three stores in 1971 to more than 1,100 in 27 states today, including more than two dozen stores in the Hudson Valley.
The current co-CEOs, David and Stephen Sorbaro, will continue to lead the company after the deal closes.
Philadelphia attorney Gavin P. Lentz represents Nest.
I’m one of the contractors that got screwed though this deal. Worked with Mavis for more then 25 years. They hire this shame company Nest and it all goes to pot. Mavis has always been a great company to do business with. Now because of Nest I’m out of approximately $39k
Never work with nest or any maintenance company