Item 1.02. Termination of a Material Definitive Agreement

On October 11, 2012, in accordance with the provisions of that certain Indenture, dated as of December 14, 2004, by and between The Pep Boys - Manny, Moe & Jack (the "Company"), and U.S. Bank National Association (successor to Wachovia Bank, National Association), as trustee (the "Trustee"), as supplemented and amended by that certain First Supplemental Indenture, dated as of December 14, 2004, among the Company, the subsidiary guarantors party thereto and the Trustee (collectively, as so supplemented and amended, the "Indenture"), relating to the Company's 7.50% Senior Subordinated Notes due 2014 (the "Notes"), the Company ordered the Trustee to call for redemption all oustanding Notes on December 15, 2012 (the "Redemption Date") at a redemption price of 100% of their aggregate principal amount.

Simultaneously, on October 11, 2012, in accordance with the terms of the Indenture, the Company satisfied and discharged the Notes and the Indenture by depositing funds into trust with the Trustee for purposes of consummating the redemption, which funds are sufficient to pay the entire indebtedness on the Notes, including the principal of, any premium and interest on, and any additional amounts with respect to, the Notes to the Redemption Date.