repco lifeline breaks are they going under

Considering the nosedive in RCL lately, this article from today's paper will probably make things much worse:
The revheads' favourite shop has turned, in less than three years, into a junkyard dog.

THERE'S all manner of talk surrounding the accelerating slide at car parts retailer Repco Corp, chief among them that competitor Super Cheap Auto has walked away from rescue talks while some big name investors are getting badly burnt by sticking by the retailer.

The company shares slid a further 5 per cent yesterday to extend its losses for 2006 to nearly 63 per cent, making it far and away the worst performer in the ASX 200 in 2006.

Whispers attributed the acceleration in the share price fall to Super Cheap Auto baling from talks after Repco put up the white flag and called for industry consolidation after its most recent profit warning.

Super Cheap's Peter Birtles didn't return calls.

New man in the Repco hot seat, Graeme Yeomans, declined to comment on the rumour.

Asked if he stood by company announcements pre-dating his arrival that Repco was seeking industry consolidation, Mr Yeomans said: "I will neither back it [nor] walk away from it."

The company had a "bright future" while there was an avenue for all operators in the industry to "work smarter", he said.

He plans to outline a turnaround strategy later this month. He didn't offer a reason for the acceleration in the company's share price fall, noting the company would be obliged to disclose any concerns over debt covenants reported in the media last week.

While Repco hasn't been able to arrest the share price slide as yet, interest rates and petrol prices continue to cast a pall over the company's immediate future. And that must be hurting some of the big names who are taking a bath on Repco.

Private equity partners Macquarie Direct Investments, Gresham Partners and Grant Samuel Private Equity offloaded the company in 2003 at $2.65 a share through ABN Amro Rothschild and UBS.

Wonder if they're still on talking terms with some big names on the Repco register: Franklin Resources, JP Morgan Chase & Co, Lazard Asset Management, National Australia Bank, Perpetual Trustees, Promina and Schroder Investment.