'It wasn’t inevitable. We were looking forward to a good winter'
Edcon – the owner of Edgars and Jet – will file for voluntary business rescue, the company announced on Wednesday.
The company lost R2 billion in sales since President Cyril Ramaphosa declared a state of national disaster in mid-March.
Edcon is unable to pay its suppliers for both the March and April month-ends. Paying April salaries will require assistance from the UIF COVID-19 TERS program.Edcon statement
Edcon anticipates that the sales will be depressed for some time during the ‘COVID-19 Risk-Adjusted Strategy’ phase, which may last several months.Edcon statement
Edcon’s stores will reopen on 1 May, operating under “business rescue”.
We’ve been unable to raise the funds needed to pay the creditors for the March and April month-ends.Grant Pattison, CEO - Edcon
The Money Show’s Bruce Whitfield interviewed Pattison.
It wasn’t inevitable… We were looking forward to a good winter…Grant Pattison, CEO - Edcon
We presented our [turnaround] plan to the board and shareholders… We didn’t get a 'yes'…Grant Pattison, CEO - Edcon
We’re in a holding phase at the moment… We’ll open normally on Friday…Grant Pattison, CEO - Edcon
We have to consider splitting up the different businesses, to be owned by different people… It is their [business rescue practitioners] call… I think the brands ‘Edgars’ and ‘Jet’ will be trading at Christmas this year.Grant Pattison, CEO - Edcon
Listen to the interview in the audio below.
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