Is Pep Boys sale falling apart?

Shares of Pep Boys fell 25% to $11-and-change in trading today after the Philadelphia-based auto parts and service chain said Gores Group, the investment fund that had promised last winter to buy Pep Boys for $1 billion and take it private, is trying to delay the deal, following a drop in Pep Boys sales.

More here in Pep Boys' statement to the Securities and Exchange Commissoin, see especially Page 10. Summary: 

"On April 26, 2012, Gores requested that Pep Boys delay mailing this proxy statement by 30 days.

"Pep Boys offered to extend the period of time within which the closing of the Merger is required to occur ...

"Gores rejected this counterproposal and reiterated its request to delay the mailing of the proxy statement by 30 days. In addition, Gores stated its belief that (Pep Boys financial projections are) no longer accurate... 

"Pep Boys may have experienced a material adverse effect or may have violated covenants contained in the Merger Agreement," Gores added. So Gores thinks it might be able to prove, in court, it should "be relieved from its obligation to consummate the Merger...

"Pep Boys believes that its first quarter results were below expectations due to a variety of factors occurring in the ordinary course of busines," which will come out in its next quarterly report.

"Pep Boys further believes that these factors existed, were known or should have been known to Gores prior to the execution of the Merger Agreement." And the deal should go through.

Is Gores suffering buyers' remorse? Or just trying to get a lower price? Would a court force Gores to buy Pep Boys, under the agreement, even if it gets cold feet? That's what happened to Dow Chemical when it had to buy Rohm and Haas. Stay tuned.