Autocare Services Employees

What is Voluntary Administration (VA)?

What is Voluntary Administration (VA)?

When a business experiences significant financial difficulty, it can be placed into administration voluntarily by the business’ directors.

VA is a process in which administrators are appointed to come in with a fresh pair of eyes and explore options to maximise value back to the business’ creditors.

The intent of VA is so a business can emerge post the VA process in a sustainable and viable position.

Who are the administrators?

Christopher Hill, Joseph Hansell and Ross Blakeley are from FTI Consulting.FTI Consulting is an independent global business advisory firm, located in Brisbane, Melbourne, Perth and Sydney.

You can expect to see FTI Consulting representatives at Autocare Services sites over the months to come.

More information about FTI Consulting – www.fticonsulting.com/about/

Why VA?

The decision to place Autocare Services into VA was necessary due to:

  • New vehicle sales and storage volumes are not forecast to return to levels that Autocare Services can sustain in its current structure.
  • Successive years of operating in volatile market conditions, declining vehicle volumes and increasing operating costs, significantly impacting Autocare Service’s ongoing financial viability.
  • Market volatility has been heightened by the ongoing COVID-19 pandemic.

What does VA mean for you?

Please continue your work and maintain your focus on safety.

You will continue to be paid.

The administrators will, in the coming days and weeks, assess the Autocare Services business and determine any required changes, including any potential changes which may impact upon Autocare Services’ employees.

As part of any proposed changes during the administration process, it may be necessary to consider to reduce the workforce and some sites may be impacted.

Employees impacted by any proposed changes will be managed in accordance with the relevant and applicable industrial instrument.

It is intended that impacted employees will be paid entitlements (if applicable).