GE pulls pin on National Parts

GE Commercial may have forced the liquidation of National Parts, one of Australia's largest car parts' distributors. The firm trades mainly through six wholesale outlets that supply the AutoPro network of retail outlets.

The AutoPro outlets appear to be independently owned and operated on a franchise basis.

Automotive Components Limited, an unlisted public company largely owned by management, appointed KordaMentha as administrators of National Parts yesterday.

KordaMentha said in a media release that it would liquidate National Parts, with assets of the business to be advertised for sale in newspapers today. The administrators said in a media release National Parts employed around 300 people.

Financial statements for National Parts for the June 2007 year show the subsidiary incurred a loss of $2.5 million on revenue of $116 million (and stable with revenues in 2006).

Accumulated losses were $25.5 million, with debt in the subsidiary appearing to be provided by its parent entity.

Financial statements for Automotive Components for the June 2007 year show a loss of $11.3 million on revenue of $175 million. In 2006 the firm reported a profit of $1.4 million on similar revenues of $176 million. The balance sheet of the parent company shows retained profits of $23 million and net assets of $27 million.

GE Commercial replaced National Australia Bank as the financier of Automotive Components in October 2006, according to the financial statements for Automotive Components. The financier provided a three year, revolving credit facility for $32 million, of which around $20 million was drawn at balance date.

KordaMentha said in a media release that the viability of National Parts had been "fatally wounded" by high operating costs, a general economic tightening and continued decline in the industry.