Edcon approves restructuring plan

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The Board of South Africa’s largest clothing retailer, Edcon, has approved the company’s restructuring and recapitalisation plan.

Edcon, which owns CNA, Edgars and Jet, was on the brink of collapse and had warned of possibly shedding 40 000 direct and 100 000 indirect jobs.

The retailer was also seeking R2 billion in emergency funding from its owners and the state-owned Public Investment Corporation.

Edcon CEO, Grant Pattison, says Edcon lenders have also extended payback periods based on the new plan.

“The current plan is based on about a three year runway and in that time the plan is to have the business profitable and self-sustaining in terms of cash generation.”

“The current plan does not involve offloading any entities. It’s such a complicated deal; there is no one solution for one stakeholder.”

“All the stakeholders have come together with solutions. It is not possible to talk about it in any general terms and staff members and suppliers and staff of suppliers can go into the Christmas period with some comfort.”

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