Reddi Brake’s Lower Revenues Lead to Loss

Ventura-based Reddi Brake Supply Corp. reported second-quarter revenue of $10.68 million for the period ended Dec. 31 versus $14.57 million for the same quarter a year earlier.

The company reported a net loss of $4.12 million, or 13 cents per share, compared to a net loss of $2.65 million, or 16 cents per share, for the previous year.

Company officials said the net loss is attributable in large part to a decrease in sales caused by a lack of fast-moving inventory items in Reddi Brake’s warehouses because of capital constraints.

Reddi Brake is in informal reorganization and has reached an agreement with its major trade creditors that will allow the company to return a significant volume of slower-moving inventory for a combination of new fast-moving inventory and credit against amounts owed.

The agreement is contingent upon certain third-party investments in the company, which are currently being negotiated.

Reddi Brake operates 84 outlets in 26 states, distributing brake systems, chassis components and other undercarriage parts to professional installers.