Automotive Components limted goes into liquidation

[hy_boi]

Stolen from ninemsn.

Car parts firm closes, 300 lose jobs
Tuesday Feb 12 14:02 AEDT
Australia's largest car parts distributor has gone into liquidation, putting 300 people out of work.

Staff at National Parts plants in Melbourne, Sydney, Brisbane, Adelaide, Perth and Newcastle were told the company was performing too poorly to continue trading and could no longer offer employment.

The company is a wholly owned subsidiary of Automotive Components Limited (ACL) and employs 300 staff around Australia.

Liquidator KordaMentha issued a statement saying the administrators had no choice but to cease trading.




"The viability of the company has been fatally wounded by high operating costs, a general economic tightening and continued decline in the parts industry," KordaMentha spokesman Craig Shepard said.

SCL chairman and chief executive Ivan James said "external economic conditions and a general decline in the car parts industry have become too much".

"I would like to thank all employees for their efforts to try to avoid this unfortunate outcome ..." Mr James said in the statement.

"In the end, we were obliged to call in administrators who fulfilled their statutory obligations and decided to close the company down.

"The administrators have committed to providing all possible help for the employees to receive their entitlements."

The company's assets, including six distribution centres and the nationwide network of AutoPro retail stores, will be advertised for sale on Wednesday.

The Australian Manufacturing Workers Union told AAP it had sent a delegate to the Sydney premises of National Parts and will be releasing a statement later.

Whats going on with the aussie auto industry