- Edcon BRPs say they have signed an agreement to sell parts of the fashion retailer Edgars to Retailability.
- Retailability owns the brands Legit, Beaver Canoe and Style.
- Competition authorities must still give the go-ahead.
The business rescue practitioners (BRPs) for Edcon say they have signed an agreement to sell parts of fashion retailer Edgars to Retailability.
Edcon, which owns Edgars and Jet Stores, announced in late April that it would file for voluntary business rescue after the nationwide lockdown exacerbated its already dire financial position. In June, its BRPs said the only way to save the company and the jobs of its thousands of its employees was through an "accelerated sale" of its divisions to interested parties.
Retailability, a fashion retailer and holding company, owns the brands Legit, Beaver Canoe and Style, and operates in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and eSwatini.
"The transaction, if successfully concluded, will be a positive outcome for the business rescue process, as Edgars with its great brands, product offerings and retail footprint, will be well served in the hands of an experienced Retailability team," the practitioners said in a statement.
The next step is getting the greenlight from competition authorities for the sale to go ahead. The statement did not say what parts of Edgars Retailability was interested in acquiring.
"This significant step will not only save a significant number of jobs, but importantly, will lead to the sustainability of a proudly South African iconic brand, whose continuity would serve the greater economy."