Edcon plans to sell its clothing retail divisions as part of its business rescue plan
Edcon's BRPs have said that the businesses who aren't sold will be auctioned off, among other means.
The business rescue practitioners (BRPs) for Edcon have said the only way to save the company and the livelihoods of its employees is to sell the clothing retailer’s divisions to interested parties.
Edcon announced on 29 April that it would file for voluntary business rescue after the nationwide lockdown worsened its already dire financial position, causing the group to lose about R2 billion in sales when it was not allowed to trade.
Edcon’s business rescue practitioners have delivered the company’s rescue plan, stating that an “accelerated sales process” of divisions that can be sold and a winding down of those they may fail to sell would be in the best interests of all the company’s stakeholders.
The sale of its businesses would allow the company to transfer some of the employees to new owners, resulting in a significant number of jobs being saved.
According to the BRPs, a significant number of parties have already expressed interest in the sales process. Initially, the company received interest from 19 parties who were keen to participate in the accelerated sale process, the BRPs said. Fifteen of these complied with the requirements to proceed as preferred bidders. They are required to submit their final offers by the end of June 2020 and finalising of successful bids will happen by early July 2020.
Divisions that aren’t sold in that process could be auctioned or sold in private treaty sales, among other means.