Edcon group
TFG concludes agreement to buy Jet stores, some approvals pending
TFG, known as The Foschini Group, said in July it will buy 371 stores and some assets of Jet for R480 million ($27.56 million) in order to expand into the...
The approval paves the way for the administrators to finalise the sale process by the end of June to allow time for supplier negotiations and for summer stock to be purchased.
Kingsgate Clothing and Clematis Trading filed the urgent application in a bid to halt the adoption of Edcon's business rescue plan, which could see the group sold by July.
The retail company’s business rescue team said in order to save the retail giant from liquidation, staff numbers needed to be reduced as sale figures continued to tumble.
The administrators told creditors that Edcon could be saved because it had 'valuable brands and market position that can possibly be preserved through business rescue'.
The group, which owns Jet and Edgars, wants to file for voluntary business rescue within the next few days in order to stay afloat.
Pattison had a difficult conference call with his suppliers on Thursday explaining that they could not pay them.
Edcon has been under extreme financial pressure over the past few years.
Edcon CEO Grant Pattison said while the company has been in financial trouble for a long time, it’s already on track in closing a deal that will save the company.
Saftu's Zwelinzima Vavi says the country can't afford any more job losses.
Edcon says it plans to have the deal signed before Christmas and implement it early next year.
The Sunday Times is reporting that the owners of Edgars have warned that over 100,000 jobs are therefore on the line.
The regulator’s Jaqueline Peters says they will now approach Edcon to request an independent audit of its loan book.