AutoZone 'can't pay debts'

DISTRESS: CAR PARTS RETAILER LOOKS TO RESTRUCTURE TO MAKE IT SOLVENT

- Roy Cokayne

CEO believes business rescue will give the company breathing space.

AutoZone, which claims to be the largest privately owned automotive parts retailer and wholesaler in southern Africa, 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, with the Companies and Intellectual Property Commission confirming that it registered an application by AutoZone to be placed in voluntary business rescue on 2 July.

Piers Michael Marsden and Jenna Lee Osborne from Matuson & Associates have been appointed the company's business rescue practitioners.

The resolution of AutoZone's board states that after conducting investigations, it recognised that the company is financially distressed as envisaged in the Companies Act, but believes there are reasonable prospects for the rescue of the company.

AutoZone director and CEO Dion de Graaff said in a sworn statement in support of the application that the company is principally involved in the motor spares industry by selling aftermarket automotive parts and accessories.

It trades as AutoZone and QSV out of about 190 leased premises scattered around South Africa.