Otasco
| Company type | Private (employee-owned from 1984) |
|---|---|
| Industry | Retail (automotive parts and household appliances) |
| Founded | 1918 |
| Founder | Sam Sanditen, Maurice Sanditen, Herman Sanditen |
| Defunct | 1989 |
| Fate | Bankruptcy and closure of all stores |
| Headquarters | Tulsa , United States |
Area served | 12 U.S. states (at peak) |
Key people | Tim Finley (President and CEO at closure) |
| Products | Automotive parts, household appliances |
Number of employees | approx. 1,600 (at bankruptcy in 1988) |
Otasco Overview
Otasco—an acronym for Oklahoma Tire and Supply Company—was a retail enterprise centered on automotive parts and household appliances, headquartered in Tulsa, Oklahoma.
The business was founded in 1918 by three Lithuanian Jewish immigrant brothers: Sam (1898–1939), Maurice (1891–1970), and Herman (1889–1971) Sanditen. Their inaugural store opened in Okmulgee, with the company relocating its main offices to Tulsa by 1925. Otasco’s business model notably emphasized offering products through credit sales.
In 1960, the company was acquired by the McCrory Corporation, which retained the involvement of the Sanditen brothers. By 1968, the chain had expanded to 455 locations spanning 12 states. In a significant shift in 1984, Otasco's workforce purchased the company from McCrory, establishing one of the largest employee-owned enterprises in the United States.
Despite efforts to rejuvenate its brand—including hiring The Richards Group in the 1980s to develop a new logo and marketing campaign—Otasco’s sales declined throughout that decade. The company filed for Chapter 11 bankruptcy protection in 1988, leading to the closure of 171 stores across 11 states and resulting in approximately 1,600 job losses.
On March 30, 1989, then-President and CEO Tim Finley orchestrated the reopening of 43 stores while many others were liquidating. This strategy aimed to channel funds from closing outlets into those still profitable to sustain operations. However, when this initiative failed to reverse fortunes, all remaining Otasco locations ceased operations permanently at the close of business on June 3, 1989.
Following the chain’s closure, franchisees were reportedly granted a 99-year license permitting continued use of the Otasco name. As of 2014, two Otasco stores remained active within Oklahoma—in Beaver and Marlow. Additionally, a store operating under the Otasco brand existed in Borger, Texas as recently as 2012. A locally owned Otasco Associate store also continued serving customers in Many, Louisiana as of 2014.