Edcon (owner of Edgars, Jet and CNA) to close a third of its stores
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:
This article first appeared on 702 : Edcon (owner of Edgars, Jet and CNA) to close a third of its stores
Pavlo Phitidis tells more about a strategy that he has been using for years and how to apply this in a business.Read More
Personal financial adviser Warren Ingram says active fund managers in South Africa have had a terrible time.Read More
Association of Meat Importers and Exporters CEO Paul Matthew says there are mechanisms to deal with a possibility of dumpingRead More
DPE acting director-general Kgathatso Tlhakudi says there is hope ahead of talks with Numsa, Sacca and pilots association.Read More
Elon Musk’s revolutionary electric car manufacturer has just overtaken Toyota as the world’s most valuable automaker.Read More
"We’ve hired people we haven’t met in person," says Karl Hammerschmidt. "There are things you can still do to impress."Read More
SIU's Kaizer Kganyago says cases involve price gouging and procurement process irregularities in the health sector.Read More
The tourism ministry has confirmed that leisure travel is not allowed under level 3 lockdown despite earlier claims to the contrary.Read More
A labour lawyer says she has dealt with companies coming to terms with paying for employees home internet data for work purposes.Read More
So, far it’s been a good season for South Africa, says Tonie Fuchs (Managing Director at Capespan Group Limited).Read More