Publication of the business rescue plan for beleaguered car-parts and accessories retailer AutoZone was extended to later this month from its scheduled August 5 deadline.
This was confirmed by trade union Motor Industry Staff Association (Misa), which belatedly registered interest in the process as well as Absa bank, which has secured an order to attach AutoZone’s assets.
“Absa is comfortable with the business rescue extension, and continues to support AutoZone and the business rescue practitioners towards achieving a constructive solution,” an Absa spokesperson said.
At its meeting with creditors in July, the business rescue practitioners of Matuson and Associates reported they had begun discussions with several parties who have expressed an interest in acquiring AutoZone.
This raised the possibility that the company may be sold, and the proceeds from the sale used to cover its debts.
“We believe that the business rescue process will provide a reasonable prospect in achieving a better outcome for all stakeholders than an immediate liquidation,” said Piers Marsden and Jenna Osborne, AutoZone’s designated business rescue practitioner.
AutoZone is the largest privately-owned automotive-parts retailer and wholesaler in Southern Africa, operating in South Africa, Nambia, Swaziland, and Botswana. Prior to entering business rescue, it had 214 retail branches owned by the company, and 33 franchise branches.
Marsden and Osborne said they have now taken effective control of AutoZone while working closely with its executive management.
BUSINESS REPORT