Debt-laden Edcon in 'rescue' deal - report

Debt-laden retail giant Edcon reached a non-binding agreement with unidentified investors to recapitalise and avoid selling some of its businesses, the Sunday Times reports, citing Chief Executive Grant Pattison.

Basic terms have been agreed and the company is putting in place “detailed clauses of the final agreement”, Pattison said, according to the Johannesburg-based newspaper.

The 89-year-old company has about 21 000 employees in South Africa where more than one in four people don’t have jobs.

Edcon, with more than 1 100 stores across southern Africa, has struggled amid weak consumer spending and slower economic growth in South Africa. It was taken over by banks and bondholders in 2016 to avoid failing.

Edcon’s net third-party debt climbed 67% to R7bn ($445m) at the end of June, from R4.2bn a year earlier, as the currency weakened against the euro and interest charges increased after converting some of its debt, it says on its website.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.11
(-0.02)
ZAR/GBP
20.24
(-0.06)
ZAR/EUR
18.04
(-0.17)
ZAR/AUD
11.13
(-0.02)
ZAR/JPY
0.14
(-0.08)
Gold
1810.26
(+0.13)
Silver
23.28
(-0.24)
Platinum
965.00
(+0.66)
Brent Crude
48.73
(+1.57)
Palladium
2369.50
(+2.00)
All Share
57742.19
(-0.03)
Top 40
52940.79
(-0.20)
Financial 15
11641.10
(-0.29)
Industrial 25
79835.50
(-0.36)
Resource 10
52605.42
(+0.07)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
22% - 338 votes
No, I did not.
51% - 792 votes
My landlord refused
27% - 427 votes
Vote