Cape Town - The Foschini Group's (TFG) acquisition of a second UK retailer comes as South African companies are trapped in an economy without growth and seek diversification of their risk exposure.
TFG [JSE:TFG] said on Thursday that through its UK subsidiary, Phase Eight, it acquired the entire share capital of Whistles, a British contemporary fashion brand for men and women.
Sasfin Securities director David Shapiro said on Thursday that he was not surprised by the announcement.
“It's the only escape route for local companies trapped in an economy without growth,” he said. “Africa is also not proving to be the Nirvana everyone thought it would be.”
“Soon if we take out the foreign holdings of the JSE there will be nothing left,” he warned. “But all credit to our private sector that never give up and keep adapting their business models.”