Debt-laden Edcon in ‘rescue’ deal – report
Debt-laden retail giant Edcon reached a non-binding agreement with unidentified investors to recapitalise and avoid selling some of its businesses, the Sunday Times reports, citing Chief Executive Grant Pattison.
Basic terms have been agreed and the company is putting in place “detailed clauses of the final agreement”, Pattison said, according to the Johannesburg-based newspaper.
The 89-year-old company has about 21 000 employees in South Africa where more than one in four people don’t have jobs.
Edcon, with more than 1 100 stores across southern Africa, has struggled amid weak consumer spending and slower economic growth in South Africa. It was taken over by banks and bondholders in 2016 to avoid failing.
Read the full story on: fin24.
Comments