You will not lose your 401-K if this sale goes through, although there may be changes in the program in the future. However, your money is yours. The sale of Pep Boys to the Gore Group is expected to go through in the second quarter of 2012. I'm sure your Human Resources department will provide information on what will happen to 401-k's after the sale.

Just got my letter from pep boys saying they will not match my contribution for last year thanks for nothing . i am sure it has to do with the sale

That's interesting. At one point the Pep Boys stock was down to $3 a share until they turned things around in 2010. I know the Gore Group said they were going to keep the current management and they plan to expand, however, I heard that story when i worked at another company that bought out by a private equity firm.

Note: i do not work at Pep Boys. However, the changes have started and the bean counters are not waiting in the lobby any longer.