• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Business

Edcon to file for voluntary business rescue

29 April 2020, 1:48 PM  |
Amina Accram Amina Accram |  @SABCNews
EDCON has been unable to pay creditors and suppliers since the beginning of the nationwide lockdown.

EDCON has been unable to pay creditors and suppliers since the beginning of the nationwide lockdown.

Image: Edgars website

EDCON has been unable to pay creditors and suppliers since the beginning of the nationwide lockdown.

Struggling retail giant EDCON, which owns Edgars, Boardmans, CNA and Jet, has informed its creditors and suppliers that it will commence voluntary business rescue proceedings as a result of the company’s dire financial position.

Edcon’s already precarious financial situations worsen when the coronavirus lockdown was implemented.

In a letter, CEO Grant Pattison indicates that the company lost about R2-billion in sales due to the lockdown. Edcon indicates that the opening of stores and trade from the first of May will take place under business rescue.

Pattison has indicated in a voice note that Edcon anticipates a significant shortage of cash by the end of this month. He says they were unable to pay creditors and suppliers before the start of the nationwide lockdown.

“For your own planning, it would be prudent of you to consider that orders already placed with you may be cancelled. I encourage you to work with buyers and planners. In this respect, we will be dependent on your assessment of our ability to pay for both arrears and future purchases and orders and services. In the midst of our own stress and fears, we acknowledge the impact that our financial position will have on you and your businesses and the devastating effects that our decisions will have on your operations. We can only sympathize with you.”

Pattison says they have used up the remaining cash due to the coronavirus pandemic.

Thousands of jobs at the retailer could be lost if the company goes into liquidation or if it goes ahead with retrenchment options through business rescue.

Restructuring and recapitalisation plan 

In December 2018, the EDCON board approved a restructuring and recapitalisation plan that was meant to ease the groups’ financial strains.

The retailer was also seeking R2 billion in emergency funding from the Public Investment Corporation.

In the video below, CEO Grant Pattison explained how Edcon lenders also extended payback periods based on the plan:

Share article
Tags: Business RescueEdconGrant PattisonLockdown
Previous Post

Allocated COVID-19 relief funds for SMMEs running out: Minister

Next Post

Consumers worried about possible repossession of goods

Related Posts

People work at ''The Factory", a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021.

Manufacturing sector expected to contribute positively to GDP: Analysts

9 June 2023, 7:15 AM
FILE PHOTO: FILE PHOTO: Office workers and shoppers walk through Sydney's central business district in Australia, September 7, 2016.   REUTERS

Australia recession risk heightens after RBA warns of bumpy path to low inflation

9 June 2023, 6:03 AM
Finance Minister Enoch Godongwana in Parliament

Load shedding is likely to have an impact on growth outlook: Godongwana

8 June 2023, 7:00 PM
Transnet terminal

BLSA says Tuesday’s meeting with President Ramaphosa was positive and constructive

8 June 2023, 5:43 PM
A worker seen at a manufacturing plant

Manufacturing sector surpasses forecasts

8 June 2023, 4:00 PM
General view of the new floating LNG gas terminal, which allows Germany to import LNG via ship from other countries, in the harbour in Wilhelmshaven, Germany, November 15, 2022.

Transportation essential for economic development in Northern Cape

8 June 2023, 12:30 PM
Next Post
Repossessed Home

Consumers worried about possible repossession of goods

Most Viewed

  • 24hrs
  • Week
  • Month
  • [Editorial Update] Unisa suspends registrar for various breaches of policy
  • Orlando Pirates player Thembinkosi Lorch found guilty of assault
  • Slain teen Palesa Malatji’s family calls for death sentence to be reinstated
  • Female student stabbed to death at NMU residence
  • Tina Joemat-Pettersson has passed away
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Deadline for Zimbabwean Exemption Permits draws near
  • Reserve Bank expected to increase repo rate on Thursday
  • Zimbabwe receives 18 helicopters from Russian Federation
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Joburg south without water and electricity until further notice: City Power
  • Motsoaledi’s extension of ZEP dispensation welcomed
  • PODCAST: KZN women allege Facebook pilot scammer defrauded them of R100 000
  • Motsoaledi extends validity of Zimbabwean Exemption Permit to December
  • Adv Hassan Kajee struck off roll of advocates: Court report

LATEST

  • Sport

UK Athletics to receive 150 000 pounds to help stage Diamond League meet


  • South Africa

Free State govt claims cholera outbreak is under control


Modimolle-Mookgophong mayor, Marlene van Staden.
  • Politics

Marlene van Staden was a dedicated servant of the people: Steenhuisen


A scientist working in a lab.
  • South Africa

New SA Isotope Facility will conduct advanced research on cancer: Nzimande


People work at ''The Factory", a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021.
  • Business

Manufacturing sector expected to contribute positively to GDP: Analysts


  • South Africa

Health Department encourages people to wash hands, boil water before drinking


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Allocated COVID-19 relief funds for SMMEs running out: Minister
Next Repossessed Home Consumers worried about possible repossession of goods