In a desperate bid to stave off liquidation and the loss of up to 140,000 jobs, retail giant Edcon has held out the begging bowl, asking its landlords for a two-year 41% “rent holiday” in exchange for a 5% stake in the business.
The debt-laden company, which owns Edgars, Jet and CNA, is on the brink of collapse – which experts say would see SA’s biggest single jobs loss.
Edgars is also a clothing retail in Zimbabwe.
In a letter sent to its 31 biggest landlords, Edcon warns that unless its remedies are accepted, “it is highly likely that Edcon will enter into a liquidation process” risking 40,000 direct and 100,000 indirect jobs.
The group is also seeking R2bn in emergency funding from its owners and the state-owned Public Investment Corporation.
The dramatic SOS constitutes Edcon’s third restructuring in only three years to stave off the bankruptcy of what was once one of SA’s most profitable retailers, now battling a mountain of debt, poor management decisions and changing shopping tastes. – Times Live