AutoZone enters voluntary business rescue

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Aim is to restructure the automotive spares business to make it solvent, or sell its assets or the business.

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 is a reference to the announcement in January 2015 by private equity firm Ethos that it had invested in AutoZone via its Ethos Fund VI to acquire a controlling interest in the company, with AutoZone’s management and black economic empowerment investors holding the balance.

“To address these challenges, the lender agreed to provide quarterly debt service holidays, offering much-needed relief. Concurrently, a sales process was initiated to recapitalise AutoZone.” “I say so as I have had three interested third parties that have expressed interest in investing in the company’s business.” ADVERTISEMENT: CONTINUE READING BELOW Business rescue will give the company “breathing space” to allow its rescue practitioners to explore all approaches and opportunities.

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