Forget hampers, Bapcor staff are getting job cuts for Christmas.
Bapcor’s new chief Noel Meehan.
Street Talk understands the ASX-listed auto parts retailer has laid off nearly 100 employees in recent weeks. The company, which owns the Autobarn and Burson brands, has let people go across the board, including at operations and in the corporate teams.
Sources said Bapcor’s job cuts were expected to continue in the coming weeks. The company employs about 5700 staff and has been struggling with tighter margins, cost inflation and deteriorating trading conditions.
Its shares have slid 17 per cent over the past 12 months. The AGM update in mid-October pushed the stock below the $6 mark for the first time since June last year.
As this column has previously reported, Bapcor tapped Macquarie Capital as its defence adviser last year, three months after boss Darryl Abotomey abruptly left the building. Rival bankers who have tried to drum up bids reckon the growth in electric vehicles makes Bapcor a hard sell for potential buyers. Its ex-CFO, Noel Meehan, took over as CEO in February last year.
A Bapcor spokeswoman confirmed the lay-offs but said they were currently limited to less than 100 people.
The company reported $2 billion in revenue (up 9.7 per cent) and $125.3 million in pro forma after-tax profit for the 2023 financial year, which was in line with guidance. But sell-side analysts have focused on deteriorating conditions. Citi tipped consensus NPAT for this financial year to be revised down by high single-digits after the AGM update.
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