AutoZone, SA's largest privately owned automotive parts retailer, enters business rescue
The company is unable to manage its debt load in an increasingly difficult economic environment.
Picture: © pramotephotostock/123rf.com
Motheo Khoaripe speaks to Anton Ressel, strategic head for SME support at Fetola.
Listen to the interview in the audio player below.
Automotive parts retailer and wholesaler AutoZone has entered into business rescue proceedings after landing in financial trouble.
The company is the largest privately owned automotive parts retailer and wholesaler in southern Africa, with operations in Botswana, Namibia, Eswatini and South Africa.
It has more than 200 wholly owned retail branches and 33 member-owned franchise branches, employing more than 1,400 people at the company.
The company boasts a supporting supply base of 688 companies, contributing to the range of 75,000 automotive parts across its network.
On the face of it, the company has done considerably well in terms of its operations, but it seems things have gone wrong, especially when looking at its debt pile.
Speaking to Motheo Khoaripe on The Money Show, Anton Resse, strategic head of SME support at Fetola, says business rescue proceedings is the first step try stave off liquidation.
"...[I]n this instance, I think there is a reasonable prospect of perhaps turning things around, but it's always a bit of a longshot. - Anton Resse, strategic head of SME support, Fetola
"Our economy is not growing, people are not spending like they were spending money. Those with cars are hanging onto them longer. Car sales are down. And there's all these ripple effects and headwinds in the economy." - Anton Resse, strategic head of SME support, Fetola
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