AutoZone has submitted a Business Rescue Plan to its creditors. Picture: MISA.
AutoZone has published a Business Rescue Plan which the retailer hopes will help secure its future following a tumultuous four years.
The company, which claims to be Mzansi’s biggest privately owned parts retailer, went into business rescue in early July after reaching a stalemate with its main credit provider, ABSA.
Its Business Rescue Plan proposes a number of structural changes aimed at ensuring a successful rescue process.
That includes the proposed closure of nine AutoZone branches, which are currently deemed unprofitable, and this is set to affect 46 employees.
The retailer currently has 214 wholly-owned branches and 33 member-owned branches throughout Southern Africa.
In line with section 151(1) of the Companies Act, AutoZone will hold a meeting with all affected creditors and other holders of a voting interest at midday on Wednesday, September 11.
The Motor Industry Staff Association (MISA) said it would continue to participate in the process in order to protect the interests of its members who are affected by the proposed layoffs.
AutoZone has struggled with debt repayments for a lengthy period of time, with the Covid-19 pandemic having hit the retailer particularly hard.
MISA chief executive Martlé Keyter said the union was well aware of the challenges that the retail motor industry faces at present, as consumers grapple with 15 year record high interest rates and a cost of living crisis.
This is also affecting the new vehicle market, with year-on-year sales in August having declined by 4.9 percent as consumers await the start of the interest rate cutting cycle.
IOL Motoring
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