Struggling clothing retailer Edcon has reached a refinancing deal with its banks, landlords and the Public Investment Corporation (PIC) on Friday.
Edcon owns Edgars, Jet and CNA.
It is Edcon’s second refinancing deal in two years.
The R2.7 billion deal will free it of all interest-bearing debt by turning its banks, landlords and the PIC into shareholders.
Edcon employs 40 000 people.
Its CEO, Grant Pattison, says he can now focus on fixing the business and implementing its survival plan which may include closing a third of its stores in the next two years and moving away from selling branded imported clothes.
Listen to the interview in the audio below (and scroll down for quotes from it).
We don’t have many lives left…— Grant Pattison, CEO - Edcon
All the debt is gone… it’s the first time Edcon has been in this position since 2007…— Grant Pattison, CEO - Edcon
We’ve lost our discipline. We don’t do the basics well… We really have to up our game…— Grant Pattison, CEO - Edcon
We’re really doing quite well with CNA… the business model still needs tweaking…— Grant Pattison, CEO - Edcon
[When] We close a store, we move the staff into surrounding stores…— Grant Pattison, CEO - Edcon
To raise this money, I had to prove we’re already turning things around… Edcon has made more profits in the last four months than in the previous year…— Grant Pattison, CEO - Edcon
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