Administrators propose sales plan for SA retailer Edcon, see potential job cuts

June 9 (Reuters) – Administrators in charge of South Africa’s Edcon have proposed a sales process that may lead to job redundancies in “significant numbers”, after the retailer filed for a form of bankruptcy protection in April.

Administrators are seeking the sales of the retailer’s divisions as going concerns, according to details of the business rescue plan published late on Monday.

“This may, in turn, result in the dismissals of some or all of the employees, for operational reasons subject to outcome and implementation of the sales process,” the administrators were quoted as saying in the document.

Edcon, which owns department store chain Edgars and budget clothing retailer Jet, entered “business rescue” proceedings after losing an estimated 2 billion rand ($120 million) of sales since the coronavirus pandemic reached South Africa in March.

The administrators, Piers Marsden and Lance Schapiro of Matuson Associates, said the proposed plan will lead to an “efficient rescue of the company” and will balance “the rights and interests of all stakeholders”.

A meeting of creditors and other holders with a voting interest will be held on June 22.

The development comes weeks after administrators said there was a reasonable chance of saving the retailer.

Edcon, hurt also due to a drop in payments from customers who had bought on credit, was unable to pay suppliers and creditors in March and April. ($1 = 16.6582 rand)

(Reporting by Kanishka Singh and Shubham Kalia in Bengaluru; Editing by Kim Coghill and Himani Sarkar)

This article was first published on Reuters and is republished with its permission.

For more coverage on COVID-19 visit:

Related Content

Edcon creditors’ bid to halt restructuring meeting rejected by court – Reuters

The planned Monday afternoon meeting to consider the plan is going ahead according to schedule, the administrators said in a notice to affected parties. The meeting is still in session.

MultiChoice FY profits jumps, add 900K new subscribers

Africa’s largest pay TV operator added 900,000 new subscribers in the 2020 financial year. Multi-choice said annual profit jumped 39 per cent, helped by reduced losses in its rest of Africa portfolio and strong cost containment. Calvo Mawela, CEO, MultiChocie Group.

Zimbabwe tightens coronavirus lockdown in capital Harare as cases hit 203

Zimbabwean troops and police on Tuesday tightened the coronavirus lockdown in the capital Harare, blocking many cars and buses from entering the central business district as cases of infections increased.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Land Bank default forces S.Africa’s central bank into $200 mln bailout of state investment arm

JOHANNESBURG (Reuters) - South Africa’s central bank has issued a 3.45 billion rand ($200 million) guarantee to bail out the Corporation for...

Zimbabwe’s Landela agrees to buy state-owned gold mines, seeks more assets

HARARE (Reuters) - Zimbabwe’s Landela Mining Venture has reached agreements to take over and revive four idle state-owned gold mines and is...

How Zimbabwe farmers will be trained how to farm with a scheme from Belarus with love

When the farm invasions were unleashed by the people in power in 2000, it led to bloodshed and random confiscation that reaped a bitter harvest of lost production and exports that persists until this day. That year with all of its fumbling fury fuelled with the idea that to get rich you merely had to own a farm, is always seen as a turning point for the industry. It created a large slice of the country’s GDP and as it fell, so did the fortunes of Zimbabwe.

South Africa’s National Treasury says “no further action” to bailout SAA airline

CAPE TOWN (Reuters) - South Africa’s National Treasury said on Friday there was “no further action” planned to bailout struggling national airline...

Partner Content

Sanlam launches urgent job-preservation initiative in response to COVID-19

Sanlam Investments is responding to the COVID-19 pandemic through large-scale support of the recovery of South African companies, from small enterprises to...

Is Market Volatility Here For The Foreseeable Future?

Content provided by CompareForexBrokers Prior to understanding why market volatility might be here to stay for the foreseeable future,...

Trending Now

Morocco’s RAM to axe routes, may reduce fleet to secure aid

RABAT (Reuters) - Moroccan airline Royal Air Maroc plans to cancel some air links, cut jobs and may sell 20 aircraft to...

Vedanta’s Zambia copper unit warns part of Nchanga open-pit mine about to collapse

LUSAKA (Reuters) - Zambia’s Konkola Copper Mines (KCM), a unit of diversified miner Vedanta Resources, has closed part of its open-pit mine...

Old Mutual makes acting CEO permanent, a year after sacking predecessor

JOHANNESBURG (Reuters) - Old Mutual said on Friday acting CEO Iain Williamson had been made permanent, ending a year of uncertainty over...

South Africa’s Capitec forecasts 70% profit fall in blow to shares

(Reuters) - Capitec Bank forecast a fall of at least 70% in first-half earnings on Friday due to a spike in bad...
- Advertisement -