S.Africa's Ellerine in talks to sell Wetherlys, Geen & Richards brands - CNBC Africa

S.Africa's Ellerine in talks to sell Wetherlys, Geen & Richards brands

Southern Africa

by Reuters 0

South Africa's Ellerine in talks to sell Wetherlys, Geen & Richards brands. PHOTO: Ellerines.co.za

This is according to its business rescue administrator on Thursday.

The retailer with debts adding up to around 1.3 billion rand (111 million US dollars) and was forced into business rescue, which allows for temporary protection from creditors, after parent African Bank Investments (Abil) cut funding last year.

"We are in the process of selling the brand names," Les Matuson, one of the administrators in charge of Ellerine's business rescue, told Reuters. He declined to disclose the amounts involved.

Last month, Shoprite received competition authorities' nod to take up the leases of the high-end Wetherlys stores.

(READ MORE: Shoprite to buy Ellerines' Wetherlys)

Ellerine already has approval to sell about 63 stores of its Beares brand to Lewis Group for $8 million and also has the go-ahead to dispose of Dial-a-Bed to Coricraft.

It also has a 400 million rand (34 million US dollars) indicative offer for stores outside South Africa, which Matuson said was from a listed South African retailer.

Other Ellerine brands include Ellerines stores and Furniture City.

(READ MORE: African Bank's Ellerines applies for business rescue )

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