Administrators aiding Edcon believe there is still chance of saving the company
Edcon, which owns Edgars and Jet, entered business rescue proceedings after losing an estimated R2 million of sales due to the coronavirus pandemic.
JOHANNESBURG - Administrators helping Edcon on Wednesday saidy they believed there was a reasonable chance of saving the retailer after it filed for a form of bankruptcy protection last month.
Edcon, which owns Edgars and jet, entered business rescue proceedings after losing an estimated R2 million of sales due to the coronavirus pandemic.
This, coupled with a decline in payments from customers who had bought on credit meant the company was unable to pay suppliers and creditors in march and April.
In a presentation to creditors dated 18 May and seen by Reuters, the administrators said outstanding payments for services provided and goods delivered before 29 April are subject to a moratorium.
The administrators have told creditors that Edcon can be saved because it has valuable brands and market position, which can possibly be preserved through business rescue.
They said the retail footprint is well established with significant interest being expressed by various parties to acquire or take over parts of the business.
The business rescue practitioners said they believe the rescue process would achieve a better outcome for all stakeholders than liquidation.
They will publish a business rescue plan on 8 June.