Bloomberg reports that the iconic retailer will have to find a buyer before month-end to prevent the start of liquidation proceedings.
Edcon has recently served all employees with notices of retrenchments as it blames load-shedding and the initial 45-day hard lockdown for its collapse. According to a recent report from Bloomberg, iconic clothing and cosmetics retailer Edgars will have to find a buyer that will make a binding offer by the end of June to prevent the start of liquidation proceedings. More than 22,000 jobs are in jeopardy with Edgars, Jet and Thank U employing a total of 17,292 permanent workers between them, while a further 5,000 a hired on a seasonal basis, according to a rescue plan compiled by a team led by business-recovery specialists Lance Schapiro and Piers Marsden.
Bloomberg states that thousands more are dependent on the shops through supplier networks. And, while fifteen parties have expressed interest in one or other of the companies, although it remains to be seen how many will follow through on their proposals.
In March, Edcon has announced that it is now officially under business rescue, explaining that it has lost R2 billion in sales since March 15 and that, combined with the decline in collections of the debtor’s book, they were now unable to pay its suppliers for both the March and April month-ends. Meanwhile, April salaries would only possibly be paid with the assistance of the Unemployment Insurance Fund's Covid-19 TERS program.
