The breakup of Edcon, which owns the brands Jet and Edgars, is continuing with the group announcing that it has signed a sale and purchase agreement to sell parts of Edgars to Retailability…
Retailability is a fashion retailer and holding company which owns the brands Legit, Beaver Canoe and Style. It operates in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and eSwatini.
Edcon 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 was through an “accelerated sale” of its divisions.
What happens to all of the accounts from Edcon customers?
How does the business rescue process affect repayments, and will accounts be taken over by The Foschini Group and Retailability?
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A week ago, Foschini announced it had reached an agreement to buy some of the assets of Jet.
“We are pleased that we have taken a step closer to closing this sales transaction, which not only indicates confidence in the Edgars business but augments Retailability’s already blue-chip level of retail expertise,” said the group’s business rescue practitioners in a statement.
“The signing of the sale and purchase Agreement is a positive step forward in meeting the objectives of the Edcon business rescue plan, which when successfully concluded, will result in the saving of a significant number of jobs and the continuation of a great iconic Edgars brand.”
The group did not say which parts of Edgars the sale and purchase agreement covers.
The closing of the transaction is targeted for September 2020, and still needs approval from SA’s competition authorities.
The parties will now move to work on preparing the signing of the sale and purchase agreements for the Edgars business conducted in the rest of Africa.