Reddi Brake Seeks Later Date for Earnings Report

Reddi Brake Supply in Ventura is asking for an extension on the deadline to file its annual earnings report with the Securities and Exchange Commission for the fiscal year ended June 30.

Richard McGorrian, president and chief executive officer, said the extension is needed to complete Reddi Brake’s year-end audit. Preliminary figures, subject to a final audit, indicate sales of approximately $62.7 million for the year, McGorrian said.

The company expects to report a loss of $8.6 million, or 51 cents per share. Approximately $1.3 million of the loss is attributable to a year-end write-down of certain assets.

“The company’s restructuring process, under its new management team installed in February 1996, continues to evolve,” McGorrian said. “To complete implementation of its restructuring, the company requires additional working capital in the near term and is now engaged in discussions with the investment banking community for such purposes.”

McGorrian also announced that the company has signed an agreement with Oracle Corp. for the installation of a computer system.

“We believe that this step alone will bring about significant savings and correct . . . deficiencies that have continually hampered operations of the company,” McGorrian said.

Reddi Brake operates 85 outlets in 26 states, providing distribution of brake systems, chassis components and other auto undercarriage parts to professional installers.