Pushing the envelope: CNA and its business rescue practitioners to 'part ways'

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CNA and its business rescue practitioners are parting ways.
CNA and its business rescue practitioners are parting ways.

Embattled stationery retailer CNA says it has parted ways with its business rescue practitioners.

It did not give reasons for the decision.

CNA director Rob Shortt told Fin24 the decision between the retailer and the business rescue practitioners had been reached by "mutual agreement".

CNA was placed in business rescue at the beginning of June. This came after its former owner Edcon was placed in business rescue in April last year, with all of its assets eventually sold off. Edcon sold CNA to an investment group, Astoria, with Exclusive Books' former CEO Benjamin Trisk also taking a 30% stake; however, Astoria sold its 70% stake back to management earlier this year.

The retailer also faced a spat between Trisk and its board, after the directors accused Trisk of contacting business rescue practitioners without their consent and then announced that he had resigned in April - which Trisk disputed. 

CNA's business rescue process was led by attorney Tashya Giyapersad and Simi Maharaj.

But before the agreement was reached to part ways, the business rescue practitioners wrote a letter to Trisk, which Fin24 has seen.

Trisk and CNA's business rescue practitioners were at loggerheads, with Trisk’s lawyers accusing the practitioners of "spurious allegations".

The practitioners claimed Trisk failed to provide working capital when he bought a 30% stake – as part of a takeover of CNA by the investment group Astoria – last year.

Further, Trisk was also accused of putting in a claim for tyre repairs on his personal vehicle, which his attorney said was damaged during a trip to a CNA store in Polokwane.

According to Shortt, the company has appointed a new leader for the business rescue process- attorney Stefan Steyn.

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