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
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Sun International slashed the value of its prize asset by R306 million. Bruce Whitfield interviews its CEO, Anthony Leeming.
Bruce Whitfield interviews Mohsin Tajbhai, acting CEO at Grand Parade Investments, the owner of Burger King in South Africa.
The Money Show’s Bruce Whitfield interviews Gradidge about his attitude to money (hopes and fears, successes and failures, etc.).
The Steinhoff-debacle happened while the world praised SA for its auditing standards. Bruce Whitfield interviews Dr Steven Firer.
The Money Show’s Bruce Whitfield interviews Edcon CEO Grant Pattison, the architect behind this latest turnaround plan.
The Money Show’s Bruce Whitfield interviews Pattison about his attitude to money (hopes and fears, successes and failures, etc.)
A Muslim mom and former community spokesperson - now living in SA - recounts the deep-rooted history of Islamophobia in Australia.
eNCA reporter Aldrin Sampear and EWN's Mia Lindeque say the president experienced what ordinary South Africans endure daily.
ANC head of elections, Fikile Mbalula says the president is hard at work to resolve Eskom's problems.
The tribunal approved an application for a new skyscraper in Sea Point but residents are concerned about the building's scale.
Eusebius McKaiser facillitates a debate between callers about their frustrations due to load shedding.
Demand management senior general manager, Andrew Etzinger provides details of why load shedding has been implemented.
Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.