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Moneyweb reports that automotive parts retailer and wholesaler AutoZone is in financial distress and has been placed in voluntary business rescue.
This follows a resolution taken by the AutoZone Holdings board of directors on 1 July 2024, with the Companies and Intellectual Property Commission (CIPC) confirming that it registered an application by AutoZone to be placed in voluntary business rescue on 2 July. The board’s resolution expressed a belief that there were reasonable prospects for the rescue of the company, which has about 1,452 employees. Business rescue will give the company “breathing space” to allow its rescue practitioners to explore all approaches and opportunities. No liquidation proceedings have been initiated by AutoZone or against the company, and the company is not involved in any major litigation. About a quarter of the employees are members of the National Union of Metalworkers of SA (Numsa), and about 21% are members of the Motor Industry Staff Association (Misa). Martlé Keyter of Misa said on Monday she was appalled to read about AutoZone entering into business rescue proceedings in the press. Keyter said Misa had not been notified by AutoZone of its intention to enter into business rescue proceedings despite the fact that 317 of the employees were Misa members. Misa established that employees were served with letters on Friday. “A transparent consultation would have assisted Misa to give informed advice to its members who fear that they will not get their hard earned salaries and might even face job losses. Misa’s legal department will get in contact with AutoZone and its Business Rescue Practitioners to participate in the process and protect the interest of our members,” Keyter indicated.
- Read the full original of the report in the above regard by Roy Cokayne at Moneyweb
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